Kryptoreichtum: Wie hoch ist das Vermögen von Vitalik ...

Vitalik Buterin: "Bitcoin Cash is Underrated", Miner signing blocks as Satoshi Nakamoto

Vitalik Buterin: submitted by anberlinz to CryptocurrencyLinks [link] [comments]

Vitalik Buterin Says Decreasing Miner’s Reward Schedule is Dishonest for Bitcoin

Vitalik Buterin Says Decreasing Miner’s Reward Schedule is Dishonest for Bitcoin submitted by leftok to atbitcoin [link] [comments]

Vitalik Buterin: "Bitcoin Cash is Underrated", Miner signing blocks as Satoshi Nakamoto

Vitalik Buterin: submitted by anberlinz to BlockchainNews [link] [comments]

Vitalik Buterin: "Bitcoin Cash is Underrated", Miner signing blocks as Satoshi Nakamoto

Vitalik Buterin: submitted by anberlinz to altcoin_news [link] [comments]

Vitalik Buterin Shows Up at the Bitcoin Cash Miners Meeting in Bangkok https://ift.tt/2ov8TUN

Vitalik Buterin Shows Up at the Bitcoin Cash Miners Meeting in Bangkok https://ift.tt/2ov8TUN submitted by bitnewsbot to bitnewsbot [link] [comments]

A Detailed Summary of Every Single Reason Why I am Bullish on ETH.

The following will be a list of the many reasons why I hold and am extremely bullish on ETH.

This is an extremely long post. If you just want the hopium without the detail, read the TL;DR at the bottom.

ETH 2.0

As we all know, ETH 2.0 phase 0 is right around the corner. This will lock up ETH and stakers will earn interest on their ETH in return for securing the network. Next comes phase 1 where the ETH 2 shards are introduced, shards are essentially parallel blockchains which are each responsible for a different part of Ethereum’s workload, think of it like a multi-core processor vs a single core processor. During phase 1, these shards will only act as data availability layers and won’t actually process transactions yet. However, their data can be utilised by the L2 scaling solution, rollups, increasing Ethereum’s throughput in transactions per second up to 100,000 TPS.
After phase 1 comes phase 1.5 which will move the ETH 1.0 chain into an ETH 2 shard and Ethereum will be fully secured by proof of stake. This means that ETH issuance will drop from around 5% per year to less than 1% and with EIP-1559, ETH might become a deflationary asset, but more on that later.
Finally, with ETH 2.0 phase two, each shard will be fully functional chains. With 64 of them, we can expect the base layer of Ethereum to scale around 64x, not including the massive scaling which comes from layer 2 scaling solutions like rollups as previously mentioned.
While the scaling benefits and ETH issuance reduction which comes with ETH 2.0 will be massive, they aren’t the only benefits. We also get benefits such as increased security from PoS compared to PoW, a huge energy efficiency improvement due to the removal of PoW and also the addition of eWASM which will allow contracts to be programmed in a wide range of programming languages, opening the floodgates for millions of web devs who want to be involved in Ethereum but don’t know Ethereum’s programming language, Solidity.

EIP-1559 and ETH scarcity

As I covered in a previous post of mine, ETH doesn’t have a supply cap like Bitcoin. Instead, it has a monetary policy of “minimum viable issuance”, not only is this is a good thing for network security, but with the addition of EIP-1559, it leaves the door open to the possibility of ETH issuance going negative. In short, EIP-1559 changes the fee market to make transaction prices more efficient (helping to alleviate high gas fees!) by burning a variable base fee which changes based on network usage demand rather than using a highest bidder market where miners simply include who pays them the most. This will result in most of the ETH being paid in transaction fees being burned. As of late, the amount which would be burned if EIP-1559 was in Ethereum right now would make ETH a deflationary asset!

Layer 2 Scaling

In the mean time while we are waiting for ETH 2.0, layer 2 scaling is here. Right now, projects such as Deversifi or Loopring utilise rollups to scale to thousands of tx/s on their decentralised exchange platforms or HoneySwap which uses xDai to offer a more scalable alternative to UniSwap. Speaking of which, big DeFi players like UniSwap and Synthetix are actively looking into using optimistic rollups to scale while maintaining composability between DeFi platforms. The most bullish thing about L2 scaling is all of the variety of options. Here’s a non exhaustive list of Ethereum L2 scaling solutions: - Aztec protocol (L2 scaling + privacy!) - ZKSync - Loopring - Raiden - Arbitrum Rollups - xDai - OMGNetwork - Matic - FuelLabs - Starkware - Optimism - Celer Network - + Many more

DeFi and Composability

If you’re reading this, I am sure you are aware of the phenomena which is Decentralised Finance (DeFi or more accurately, open finance). Ethereum is the first platform to offer permissionless and immutable financial services which when interacting with each other, lead to unprecedented composability and innovation in financial applications. A whole new world of possibilities are opening up thanks to this composability as it allows anyone to take existing pieces of open source code from other DeFi projects, put them together like lego pieces (hence the term money legos) and create something the world has never seen before. None of this was possible before Ethereum because typically financial services are heavily regulated and FinTech is usually proprietary software, so you don’t have any open source lego bricks to build off and you have to build everything you need from scratch. That is if what you want to do is even legal for a centralised institution!
Oh, and if you think that DeFi was just a fad and the bubble has popped, guess again! Total value locked in DeFi is currently at an all time high. Don’t believe me? Find out for yourself at: https://defipulse.com

NFTs and tokeniation

NFTs or “Non-Fungible Tokens” - despite the name which may confuse a layman - are a basic concept. They are unique tokens with their own unique attributes. This allows you to create digital art, human readable names for your ETH address (see ENS names and unstoppable domains), breedable virtual collectible creatures like crypto kitties, ownable in game assets like Gods Unchained cards or best of all in my opinion, tokenised ownership of real world assets which can even be split into pieces (this doesn’t necessarily require an NFT. Fungible tokens can be/are used for some of the following use cases). This could be tokenised ownership of real estate (see RealT), tokenised ownership of stocks, bonds and other financial assets (which by the way makes them tradable 24/7 and divisible unlike through the traditional system) or even tokenised ownership of the future income of a celebrity or athlete (see when NBA Star Spencer Dinwiddie Tokenized His Own NBA Contract.

Institutional Adoption

Ethereum is by far the most widely adopted blockchain by enterprises. Ethereum’s Enterprise Ethereum Alliance (EEA) is the largest blockchain-enterprise partnership program and Ethereum is by far the most frequently leveraged blockchain for proof of concepts and innovation in the blockchain space by enterprises. Meanwhile, there are protocols like the Baseline protocol which is a shared framework which allows enterprises to use Ethereum as a common frame of reference and a base settlement layer without having to give up privacy when settling on the public Ethereum mainnet. This framework makes adopting Ethereum much easier for other enterprises.

Institutional Investment

One of Bitcoin’s biggest things it has going for it right now is the growing institutional investment. In case you were wondering, Ethereum has this too! Grayscale offers investment in the cryptocurrency space for financial institutions and their Ethereum fund has already locked up more than 2% of the total supply of ETH. Not only this, but as businesses transact on Ethereum and better understand it, not only will they buy up ETH to pay for their transactions, but they will also realise that much like Bitcoin, Ethereum is a scarce asset. Better yet, a scarce asset which offers yield. As a result, I expect to see companies having ETH holdings become the norm just like how Bitcoin is becoming more widespread on companies’ balance sheets.

The state of global markets

With asset prices in almost every asset class at or near all-time highs and interest rates lower than ever and even negative in some cases, there really aren’t many good opportunities in the traditional financial system right now. Enter crypto - clearly the next evolution of financial services (as I explained in the section on DeFi earlier in this post), with scarce assets built in at the protocol layer, buying BTC or ETH is a lot like buying shares in TCP/IP in 1990 (that is if the underlying protocols of the internet could be invested in which they couldn’t). Best of all, major cryptos are down from their all-time highs anywhere between 35% for BTC or 70% for ETH and much more for many altcoins. This means that they can significantly appreciate in value before entering uncharted, speculative bubble territory.
While of course we could fall dramatically at any moment in the current macro financial conditions, as a longer term play, crypto is very alluring. The existing financial system has shown that it is in dire need of replacing and the potential replacement has started rearing its head in the form of crypto and DeFi.

Improvements in user onboarding and abstracting away complexity

Ethereum has started making huge leaps forward in terms of usability for the end user. We now have ENS names and unstoppable domains which allow you to send ETH to yournamehere.ETH or TrickyTroll.crypto (I don’t actually have that domain, that’s just an example). No longer do you have to check every character of your ugly hexadecimal 0x43AB96D… ETH address to ensure you’re sending your ETH to the right person. We also have smart contract wallets like Argent wallet or the Gnosis safe. These allow for users to access their wallets and interact with DeFi self-custodially from an app on their phone without having to record a private key or recovery phrase. Instead, they offer social recovery and their UI is straight forward enough for anyone who uses a smart phone to understand. Finally, for the more experienced users, DApps like Uniswap have pretty, super easy to use graphical user interfaces and can be used by anyone who knows how to run and use a browser extension like Metamask.

The lack of an obvious #1 ETH killer

One of Ethereum’s biggest threats is for it to be overthrown by a so-called “Ethereum killer” blockchain which claims to do everything Ethereum can do and sometimes more. While there are competitors which are each formidable to a certain extent such as Polkadot, Cardano and EOS, each have their own weaknesses. For example, Polkadot and Cardano are not fully operational yet and EOS is much more centralised than Ethereum. As a result, none of these competitors have any significant network effects just yet relative to the behemoth which is Ethereum. This doesn’t mean that these projects aren’t a threat. In fact, I am sure that projects like Polkadot (which is more focused on complimenting Ethereum than killing it) will take a slice out of Ethereum’s pie. However, I am still very confident that Ethereum will remain on top due to the lack of a clear number 2 smart contract platform. Since none of these ETH killers stands out as the second place smart contract platform, it makes it much harder for one project to create a network effect which even begins to threaten Ethereum’s dominance. This leads me onto my next reason - network effects.

Network effects

This is another topic which I made a previous post on. The network effect is why Bitcoin is still the number one cryptocurrency and by such a long way. Bitcoin is not the most technologically advanced cryptocurrency. However, it has the most widespread name recognition and the most adoption in most metrics (ETH beats in in some metrics these days). The network effect is also why most people use Zoom and Facebook messengeWhatsApp despite the existence of free, private, end to end encrypted alternatives which have all the same features (https://meet.jit.si/ for zoom alternative and Signal for the private messenger app. I highly recommend both. Let’s get their network effects going!). It is the same for Bitcoin. People don’t want to have to learn about or set up a wallet for alternative options. People like what is familiar and what other people use. Nobody wants to be “that guy” who makes you download yet another app and account you have to remember the password/private key for. In the same way, Enterprises don’t want to have to create a bridge between their existing systems and a dozen different blockchains. Developers don’t want to have to create DeFi money legos from scratch on a new chain if they can just plug in to existing services like Uniswap. Likewise, users don’t want to have to download another browser extension to use DApps on another chain if they already use Ethereum. I know personally I have refrained from investing in altcoins because I would have to install another app on my hardware wallet or remember another recovery phrase.
Overthrowing Ethereum’s network effect is one hell of a big task these days. Time is running out for the ETH killers.

Ethereum is the most decentralised and provably neutral smart contract platform

Ethereum is also arguably the most decentralised and provably neutral smart contract platform (except for maybe Ethereum Classic on the neutrality part). Unlike some smart contract platforms, you can’t round up everyone at the Ethereum Foundation or any select group of people and expect to be able to stop the network. Not only this, but the Ethereum foundation doesn’t have the ability to print more ETH or push through changes as they wish like some people would lead you on to believe. The community would reject detrimental EIPs and hard fork. Ever since the DAO hack, the Ethereum community has made it clear that it will not accept EIPs which attempt to roll back the chain even to recover hacked funds (see EIP-999).
Even if governments around the world wanted to censor the Ethereum blockchain, under ETH 2.0’s proof of stake, it would be incredibly costly and would require a double digit percentage of the total ETH supply, much of which would be slashed (meaning they would lose it) as punishment for running dishonest validator nodes. This means that unlike with proof of work where a 51% attacker can keep attacking the network, under proof of stake, an attacker can only perform the attack a couple of times before they lose all of their ETH. This makes attacks much less financially viable than it is on proof of work chains. Network security is much more than what I laid out above and I am far from an expert but the improved resistance to 51% attacks which PoS provides is significant.
Finally, with the US dollar looking like it will lose its reserve currency status and the existing wire transfer system being outdated, superpowers like China won’t want to use US systems and the US won’t want to use a Chinese system. Enter Ethereum, the provably neutral settlement layer where the USA and China don’t have to trust each other or each other’s banks because they can trust Ethereum. While it may sound like a long shot, it does make sense if Ethereum hits a multi-trillion dollar market cap that it is the most secure and neutral way to transfer value between these adversaries. Not to mention if much of the world’s commerce were to be settled in the same place - on Ethereum - then it would make sense for governments to settle on the same platform.

ETH distribution is decentralised

Thanks to over 5 years of proof of work - a system where miners have to sell newly minted ETH to pay for electricity costs - newly mined ETH has found its way into the hands of everyday people who buy ETH off miners selling on exchnages. As pointed out by u/AdamSC1 in his analysis of the top 10K ETH addresses (I highly recommend reading this if you haven’t already), the distribution of ETH is actually slightly more decentralised than Bitcoin with the top 10,000 ETH wallets holding 56.70% of ETH supply compared to the top 10,000 Bitcoin wallets which hold 57.44% of the Bitcoin supply. This decentralised distribution means that the introduction of staking won’t centralise ETH in the hands of a few wallets who could then control the network. This is an advantage for ETH which many proof of stake ETH killers will never have as they never used PoW to distribute funds widely throughout the community and these ETH killers often did funding rounds giving large numbers of tokens to VC investors.

The community

Finally, while I may be biased, I think that Ethereum has the friendliest community. Anecdotally, I find that the Ethereum developer community is full of forward thinking people who want to make the world a better place and build a better future, many of whom are altruistic and don’t always act in their best interests. Compare this to the much more conservative, “at least we’re safe while the world burns” attitude which many Bitcoiners have. I don’t want to generalise too much here as the Bitcoin community is great too and there are some wonderful people there. But the difference is clear if you compare the daily discussion of Bitcoin to the incredibly helpful and welcoming daily discussion of EthFinance who will happily answer your noob questions without calling you an idiot and telling you to do you own research (there are plenty more examples in any of the daily threads). Or the very helpful folks over at EthStaker who will go out of their way to help you set up an ETH 2.0 staking node on the testnets (Shoutout to u/superphiz who does a lot of work over in that sub!). Don’t believe me? Head over to those subs and see for yourself.
Please don’t hate on me if you disagree about which project has the best community, it is just my very biased personal opinion and I respect your opinion if you disagree! :)

TL;DR:

submitted by Tricky_Troll to ethtrader [link] [comments]

A detailed summary of every reason why I am bullish on ETH.

The following will be a list of the many reasons why I hold and am extremely bullish on ETH.

This is an extremely long post. If you just want the hopium without the detail, read the TL;DR at the bottom.

ETH 2.0

As we all know, ETH 2.0 phase 0 is right around the corner. This will lock up ETH and stakers will earn interest on their ETH in return for securing the network. Next comes phase 1 where the ETH 2 shards are introduced, shards are essentially parallel blockchains which are each responsible for a different part of Ethereum’s workload, think of it like a multi-core processor vs a single core processor. During phase 1, these shards will only act as data availability layers and won’t actually process transactions yet. However, their data can be utilised by the L2 scaling solution, rollups, increasing Ethereum’s throughput in transactions per second up to 100,000 TPS.
After phase 1 comes phase 1.5 which will move the ETH 1.0 chain into an ETH 2 shard and Ethereum will be fully secured by proof of stake. This means that ETH issuance will drop from around 5% per year to less than 1% and with EIP-1559, ETH might become a deflationary asset, but more on that later.
Finally, with ETH 2.0 phase two, each shard will be fully functional chains. With 64 of them, we can expect the base layer of Ethereum to scale around 64x, not including the massive scaling which comes from layer 2 scaling solutions like rollups as previously mentioned.
While the scaling benefits and ETH issuance reduction which comes with ETH 2.0 will be massive, they aren’t the only benefits. We also get benefits such as increased security from PoS compared to PoW, a huge energy efficiency improvement due to the removal of PoW and also the addition of eWASM which will allow contracts to be programmed in a wide range of programming languages, opening the floodgates for millions of web devs who want to be involved in Ethereum but don’t know Ethereum’s programming language, Solidity.

EIP-1559 and ETH scarcity

As I covered in a previous post of mine, ETH doesn’t have a supply cap like Bitcoin. Instead, it has a monetary policy of “minimum viable issuance”, not only is this is a good thing for network security, but with the addition of EIP-1559, it leaves the door open to the possibility of ETH issuance going negative. In short, EIP-1559 changes the fee market to make transaction prices more efficient (helping to alleviate high gas fees!) by burning a variable base fee which changes based on network usage demand rather than using a highest bidder market where miners simply include who pays them the most. This will result in most of the ETH being paid in transaction fees being burned. As of late, the amount which would be burned if EIP-1559 was in Ethereum right now would make ETH a deflationary asset!

Layer 2 Scaling

In the mean time while we are waiting for ETH 2.0, layer 2 scaling is here. Right now, projects such as Deversifi or Loopring utilise rollups to scale to thousands of tx/s on their decentralised exchange platforms or HoneySwap which uses xDai to offer a more scalable alternative to UniSwap. Speaking of which, big DeFi players like UniSwap and Synthetix are actively looking into using optimistic rollups to scale while maintaining composability between DeFi platforms. The most bullish thing about L2 scaling is all of the variety of options. Here’s a non exhaustive list of Ethereum L2 scaling solutions: - Aztec protocol (L2 scaling + privacy!) - ZKSync - Loopring - Raiden - Arbitrum Rollups - xDai - OMGNetwork - Matic - FuelLabs - Starkware - Optimism - Celer Network - + Many more

DeFi and Composability

If you’re reading this, I am sure you are aware of the phenomena which is Decentralised Finance (DeFi or more accurately, open finance). Ethereum is the first platform to offer permissionless and immutable financial services which when interacting with each other, lead to unprecedented composability and innovation in financial applications. A whole new world of possibilities are opening up thanks to this composability as it allows anyone to take existing pieces of open source code from other DeFi projects, put them together like lego pieces (hence the term money legos) and create something the world has never seen before. None of this was possible before Ethereum because typically financial services are heavily regulated and FinTech is usually proprietary software, so you don’t have any open source lego bricks to build off and you have to build everything you need from scratch. That is if what you want to do is even legal for a centralised institution!
Oh, and if you think that DeFi was just a fad and the bubble has popped, guess again! Total value locked in DeFi is currently at an all time high. Don’t believe me? Find out for yourself at: https://defipulse.com

NFTs and tokeniation

NFTs or “Non-Fungible Tokens” - despite the name which may confuse a layman - are a basic concept. They are unique tokens with their own unique attributes. This allows you to create digital art, human readable names for your ETH address (see ENS names and unstoppable domains), breedable virtual collectible creatures like crypto kitties, ownable in game assets like Gods Unchained cards or best of all in my opinion, tokenised ownership of real world assets which can even be split into pieces (this doesn’t necessarily require an NFT. Fungible tokens can be/are used for some of the following use cases). This could be tokenised ownership of real estate (see RealT), tokenised ownership of stocks, bonds and other financial assets (which by the way makes them tradable 24/7 and divisible unlike through the traditional system) or even tokenised ownership of the future income of a celebrity or athlete (see when NBA Star Spencer Dinwiddie Tokenized His Own NBA Contract.

Institutional Adoption

Ethereum is by far the most widely adopted blockchain by enterprises. Ethereum’s Enterprise Ethereum Alliance (EEA) is the largest blockchain-enterprise partnership program and Ethereum is by far the most frequently leveraged blockchain for proof of concepts and innovation in the blockchain space by enterprises. Meanwhile, there are protocols like the Baseline protocol which is a shared framework which allows enterprises to use Ethereum as a common frame of reference and a base settlement layer without having to give up privacy when settling on the public Ethereum mainnet. This framework makes adopting Ethereum much easier for other enterprises.

Institutional Investment

One of Bitcoin’s biggest things it has going for it right now is the growing institutional investment. In case you were wondering, Ethereum has this too! Grayscale offers investment in the cryptocurrency space for financial institutions and their Ethereum fund has already locked up more than 2% of the total supply of ETH. Not only this, but as businesses transact on Ethereum and better understand it, not only will they buy up ETH to pay for their transactions, but they will also realise that much like Bitcoin, Ethereum is a scarce asset. Better yet, a scarce asset which offers yield. As a result, I expect to see companies having ETH holdings become the norm just like how Bitcoin is becoming more widespread on companies’ balance sheets.

The state of global markets

With asset prices in almost every asset class at or near all-time highs and interest rates lower than ever and even negative in some cases, there really aren’t many good opportunities in the traditional financial system right now. Enter crypto - clearly the next evolution of financial services (as I explained in the section on DeFi earlier in this post), with scarce assets built in at the protocol layer, buying BTC or ETH is a lot like buying shares in TCP/IP in 1990 (that is if the underlying protocols of the internet could be invested in which they couldn’t). Best of all, major cryptos are down from their all-time highs anywhere between 35% for BTC or 70% for ETH and much more for many altcoins. This means that they can significantly appreciate in value before entering uncharted, speculative bubble territory.
While of course we could fall dramatically at any moment in the current macro financial conditions, as a longer term play, crypto is very alluring. The existing financial system has shown that it is in dire need of replacing and the potential replacement has started rearing its head in the form of crypto and DeFi.

Improvements in user onboarding and abstracting away complexity

Ethereum has started making huge leaps forward in terms of usability for the end user. We now have ENS names and unstoppable domains which allow you to send ETH to yournamehere.ETH or TrickyTroll.crypto (I don’t actually have that domain, that’s just an example). No longer do you have to check every character of your ugly hexadecimal 0x43AB96D… ETH address to ensure you’re sending your ETH to the right person. We also have smart contract wallets like Argent wallet or the Gnosis safe. These allow for users to access their wallets and interact with DeFi self-custodially from an app on their phone without having to record a private key or recovery phrase. Instead, they offer social recovery and their UI is straight forward enough for anyone who uses a smart phone to understand. Finally, for the more experienced users, DApps like Uniswap have pretty, super easy to use graphical user interfaces and can be used by anyone who knows how to run and use a browser extension like Metamask.

The lack of an obvious #1 ETH killer

One of Ethereum’s biggest threats is for it to be overthrown by a so-called “Ethereum killer” blockchain which claims to do everything Ethereum can do and sometimes more. While there are competitors which are each formidable to a certain extent such as Polkadot, Cardano and EOS, each have their own weaknesses. For example, Polkadot and Cardano are not fully operational yet and EOS is much more centralised than Ethereum. As a result, none of these competitors have any significant network effects just yet relative to the behemoth which is Ethereum. This doesn’t mean that these projects aren’t a threat. In fact, I am sure that projects like Polkadot (which is more focused on complimenting Ethereum than killing it) will take a slice out of Ethereum’s pie. However, I am still very confident that Ethereum will remain on top due to the lack of a clear number 2 smart contract platform. Since none of these ETH killers stands out as the second place smart contract platform, it makes it much harder for one project to create a network effect which even begins to threaten Ethereum’s dominance. This leads me onto my next reason - network effects.

Network effects

This is another topic which I made a previous post on. The network effect is why Bitcoin is still the number one cryptocurrency and by such a long way. Bitcoin is not the most technologically advanced cryptocurrency. However, it has the most widespread name recognition and the most adoption in most metrics (ETH beats in in some metrics these days). The network effect is also why most people use Zoom and Facebook messengeWhatsApp despite the existence of free, private, end to end encrypted alternatives which have all the same features (https://meet.jit.si/ for zoom alternative and Signal for the private messenger app. I highly recommend both. Let’s get their network effects going!). It is the same for Bitcoin. People don’t want to have to learn about or set up a wallet for alternative options. People like what is familiar and what other people use. Nobody wants to be “that guy” who makes you download yet another app and account you have to remember the password/private key for. In the same way, Enterprises don’t want to have to create a bridge between their existing systems and a dozen different blockchains. Developers don’t want to have to create DeFi money legos from scratch on a new chain if they can just plug in to existing services like Uniswap. Likewise, users don’t want to have to download another browser extension to use DApps on another chain if they already use Ethereum. I know personally I have refrained from investing in altcoins because I would have to install another app on my hardware wallet or remember another recovery phrase.
Overthrowing Ethereum’s network effect is one hell of a big task these days. Time is running out for the ETH killers.

Ethereum is the most decentralised and provably neutral smart contract platform

Ethereum is also arguably the most decentralised and provably neutral smart contract platform (except for maybe Ethereum Classic on the neutrality part). Unlike some smart contract platforms, you can’t round up everyone at the Ethereum Foundation or any select group of people and expect to be able to stop the network. Not only this, but the Ethereum foundation doesn’t have the ability to print more ETH or push through changes as they wish like some people would lead you on to believe. The community would reject detrimental EIPs and hard fork. Ever since the DAO hack, the Ethereum community has made it clear that it will not accept EIPs which attempt to roll back the chain even to recover hacked funds (see EIP-999).
Even if governments around the world wanted to censor the Ethereum blockchain, under ETH 2.0’s proof of stake, it would be incredibly costly and would require a double digit percentage of the total ETH supply, much of which would be slashed (meaning they would lose it) as punishment for running dishonest validator nodes. This means that unlike with proof of work where a 51% attacker can keep attacking the network, under proof of stake, an attacker can only perform the attack a couple of times before they lose all of their ETH. This makes attacks much less financially viable than it is on proof of work chains. Network security is much more than what I laid out above and I am far from an expert but the improved resistance to 51% attacks which PoS provides is significant.
Finally, with the US dollar looking like it will lose its reserve currency status and the existing wire transfer system being outdated, superpowers like China won’t want to use US systems and the US won’t want to use a Chinese system. Enter Ethereum, the provably neutral settlement layer where the USA and China don’t have to trust each other or each other’s banks because they can trust Ethereum. While it may sound like a long shot, it does make sense if Ethereum hits a multi-trillion dollar market cap that it is the most secure and neutral way to transfer value between these adversaries. Not to mention if much of the world’s commerce were to be settled in the same place - on Ethereum - then it would make sense for governments to settle on the same platform.

ETH distribution is decentralised

Thanks to over 5 years of proof of work - a system where miners have to sell newly minted ETH to pay for electricity costs - newly mined ETH has found its way into the hands of everyday people who buy ETH off miners selling on exchnages. As pointed out by u/AdamSC1 in his analysis of the top 10K ETH addresses (I highly recommend reading this if you haven’t already), the distribution of ETH is actually slightly more decentralised than Bitcoin with the top 10,000 ETH wallets holding 56.70% of ETH supply compared to the top 10,000 Bitcoin wallets which hold 57.44% of the Bitcoin supply. This decentralised distribution means that the introduction of staking won’t centralise ETH in the hands of a few wallets who could then control the network. This is an advantage for ETH which many proof of stake ETH killers will never have as they never used PoW to distribute funds widely throughout the community and these ETH killers often did funding rounds giving large numbers of tokens to VC investors.

The community

Finally, while I may be biased, I think that Ethereum has the friendliest community. Anecdotally, I find that the Ethereum developer community is full of forward thinking people who want to make the world a better place and build a better future, many of whom are altruistic and don’t always act in their best interests. Compare this to the much more conservative, “at least we’re safe while the world burns” attitude which many Bitcoiners have. I don’t want to generalise too much here as the Bitcoin community is great too and there are some wonderful people there. But the difference is clear if you compare the daily discussion of Bitcoin to the incredibly helpful and welcoming daily discussion of EthFinance who will happily answer your noob questions without calling you an idiot and telling you to do you own research (there are plenty more examples in any of the daily threads). Or the very helpful folks over at EthStaker who will go out of their way to help you set up an ETH 2.0 staking node on the testnets (Shoutout to u/superphiz who does a lot of work over in that sub!). Don’t believe me? Head over to those subs and see for yourself.
Please don’t hate on me if you disagree about which project has the best community, it is just my very biased personal opinion and I respect your opinion if you disagree! :)

TL;DR:

submitted by Tricky_Troll to ethfinance [link] [comments]

About Ethereum mining pitfalls, risks, and threats

Bitcoin miners are massively switching to Ethereum. According to 8btc estimates, the payback period for a Bitcoin miner is 600 days, while for the same metric on Ether it only takes 200 days. But this goodness won’t last forever. Read about what threatens the development of Ethereum below.
Hardware and Filling – Halfway to Success
Experienced folks advise taking the most productive video cards, for example, the latest models from Nvidia and AMD. When choosing, pay attention to the amount of video memory (ideally from 2 GB), memory speed (with DDR 5 memory), bus width (better with a 256-bit bus), and cooling (basically there’s no competition to Radeon devices). Take Radeon RX 570, this 169 USD card produces 24-30 Mh/s, which is superb.
The Illusion of Stability
The entire multi-million community of Ether lovers trembled in early August when the Ethereum Classic network was subjected to several 51% attacks at once. In addition, in the first half of 2020 alone, over 5 attacks were carried out on popular DeFi platforms, including Balancer ($500,000 stolen) and bZx (17,500 ETH were stolen in total). Moreover, cybercriminals do not always use technical vulnerabilities, sometimes good old social engineering works.
Reduction of Reward
Ethereum developers have proposed to reduce the block mining reward by 75%. ConsenSys Managing Director John Leelik published the EIP-2878 proposal aimed at reducing inflation and preserving purchasing power. If supported, the reward will drop to 0.5 ETH.
The transition of ETH to ETH 2.0 (PoS)
We already wrote about this in the article "Problems of Ethereum Mining", and you can also watch the interview by Peter McCormack with the project founder Vitalik Buterin.
While the opportunity is still there, we offer everyone to get the most out of it and mine profitably. For example, take a closer look at the new CoinFLy ETH Pool, that nowadays offers more rewards than others, at least by 10%.
Profit That is Not Profit
A hidden and obvious problem is choosing the pool based on its profitability. If you only have a few capacities, then it is better to choose a pool that uses the PPS+ model, if you’ve got a lot of them, then a powerful pool with PPLNS is better. And if you’ve got so many capacities that there’s even enough for others, then you can also go SOLO, buddy. More details - here.
submitted by applesEgo to ethereum [link] [comments]

Ethereum 2.0: is another delay looming?

The team around Vitalik is working 24/7 on Ethereum 2.0, an important upgrade that will decisively advance the Ethereum blockchain. The pressure on the Ethereum developers is increasing after the blockchain had reached the limits of its resilience in the past few weeks due to the Defi boom.
The fee situation improved somewhat in October, right now the average transaction fees on Ethereum (ETH) are around 2 US dollars (image above), but the cumulative transaction fees that users have paid to Ethereum miners in 2020 so far, reached more than $ 350 million, more than twice as much as Bitcoin miners made in 2020 (approx. $ 155 million).
As you can see from the graphic above, the Ethereum miners really got it off this year, but the
Spadina-Testnet leaves a lot of open questions
Actually, the dress rehearsal of Ethereum 2.0 was supposed to start with the Spadina-Testnet and prove that the improved blockchain is already ready for use on the main-net. But Ethereum 2.0 coordinator Danny Ryan then had to admit several problems (peering etc.), which ultimately led to a failure by Spadina.
In the meantime, the errors have been corrected and next Monday, October 12th, a second attempt with the Zinken Testnet is to start. If this second test then goes well for the developers, Ethereum 2.0 Phase 0 could come to the main-net in November.
However, if errors also occur in the Zinken test-net, there is a risk of a renewed delay in Ethereum 2.0, which should actually come to the main-net in July.
Ethereum 2.0 with 100,000 TX / s in phase 1
So far, Ethereum (ETH) could only handle around 15 transactions per second (TX/s) on the base layer, but even with the switch to Ethereum 2.0 Phase 0, the blockchain on the base layer will not scale particularly and that for years, admits Ethereum co-founder Vitalik Buterin. This scaling will only come with the final phase of Ethereum 2.0, which is still years away, according to Buterin.
Therefore, Ethereum 2.0 will initially focus on rollups, plasma, and state channels. In addition, there are a number of Layer 2 solutions that are about to be introduced (Optimism, Fuel, Arbitrum, and OMG Network). Other solutions are already activated on the main-net. These include Loopring, ZKsync, and DeversiFi.
Vitalik Buterin, therefore, hopes that as many developers and users as possible will switch to rollups. This would raise the throughput to around 3,000 transactions per second (TX/s). In phase 1 with sharding, up to 100,000 Tx/s should then be possible later.
Summary
Anyone who hoped that Ethereum 2.0 would solve all scaling problems immediately should be disappointed. Ethereum 2.0 is an important step forward (PoS-Proof of Stake Consensus), but the Ethereum team will initially rely on 2-layer solutions such as rollups in order to scale.
Rollups have the advantage that the state of the blockchain is recorded off-chain. In addition, nodes (miners) and users only have to provide data in an orderly manner, but do NOT process any transactions. In principle, rollups separate data availability from data processing.
It would be important for the further scaling of Ethereum (ETH) if Layer 2 protocols are also integrated into wallets such as MetaMask. The bottom line is that investors shouldn’t expect too much from Ethereum Phase 0. It will probably take a little longer for Ethereum to scale properly.
TA (Technical analysis):
Ethereum (ETH) has stabilized at the $ 330 level for the time being and is moving towards the 50-day line that runs at $ 370. The trend-following indicator signals a further upward movement, but the consolidation, which began at the beginning of September, is not yet over.
This means:
In order for there to be further upside potential, Ethereum (ETH) would have to break the 50-day line and close above the $ 400 mark on a weekly basis.
Good luck with your financial decisions & have a good weekend
source:medium (metered paywall)
submitted by OnlyReveal6 to ethereum [link] [comments]

Minimum Viable Issuance - Why Ethereum’s lack of a hard cap on ETH issuance is a good thing.

This post will explain how the argument used by the average Bitcoin maximalist, thinking that they have found Ethereum’s achilles heel when talking about issuance is actually highlighting one of Ethereum’s strong points and one of the main threats to the longevity of the Bitcoin network.
So first let’s answer the question which I know many people have about Ethereum:

What is Ethereum’s ETH issuance schedule?

Ethereum has an issuance policy of Minimum Viable Issuance. So what does this mean exactly? It means that the issuance of ETH will be as low as possible while also maintaining a sufficient budget to pay miners (and soon to be stakers) to keep the network secure. For example, if ETH issuance was halved, miners would drop off the network and stop mining as it is no longer profitable for them to mine. As a result, the network would be less secure as it would cost less money for an attacker to control 51% of the hash power and attack the network. This means that the Ethereum community plans to change ETH issuance as time goes on to maintain a reasonable security budget which will keep the network secure but will also keep inflation in check. We have done this twice in the past with EIP-649 and EIP-1234 which reduced block rewards from 5 ETH per block to 3 ETH and from 3 ETH to 2 ETH respectively. I previously made a graph of ETH issuance over time here: https://redd.it/it8ce7
So while Ethereum doesn’t have a strictly defined issuance schedule, the community will reject any proposals which either put the security of the network at risk such as the recent EIP-2878, or we will reject proposals which will lead to excessive network security and therefore an unnecessarily high inflation rate (or we will accept proposals which reduce issuance after price rises and therefore the security budget rises). This means that when Bitcoiners accuse the Ethereum Foundation of being no better than a central bank because they can “print more Ether”, this is completely untrue. Any proposals made by the EF which would increase issuance unnecessarily would be rejected by the community in the same way that a proposal to increase the supply of Bitcoin from 21 million to 22 million would be rejected. There is a social contract around both Bitcoin’s and Ethereum’s issuance schedules. Any networks or proposals which break the social contracts of 21 million Bitcoins and minimal viable issuance of Ether would be a breach of these contracts and the new proposed network would be labeled by the community as illegitimate and the original network would live on.

So why is minimum viable issuance better than a hard cap?

Minimum viable issuance is better than a hard cap because it puts the most important part of the network first - the security. MVI ensures that the Ethereum network will always have a security budget which keeps the cost of a 51% attack impractically high. Bitcoin on the other hand, halves its security budget every 4 years until eventually only the transaction fees pay for network security. This means that every 4 years, the amount of money paying for network security halves until eventually, the value of attacking the network becomes greater than the security budget and someone performs a 51% attack (technically the security budget only halves if terms of BTC not in dollars. However, even if the price of Bitcoin more than doubles in the time that the security budget halves, the ratio of security budget to value secured on the network still halves, doubling the financial viability of performing a network attack). The strategy to pay for the security budget once Bitcoin issuance stops is for transaction fees to secure the network since transaction fees are paid to miners. Not only does this have its own security problems which I won’t detail here, but unless Bitcoin scales on layer 1 (layer 2 scaling solutions have their own security mechanisms separate from L1), then fees would have to cost well in the thousands of dollars to secure a trillion dollar market cap Bitcoin that is secured by nothing but fees. If Bitcoin maximalists want a 10 trillion or 100 trillion dollar market cap then expect fees to go up another 10 or 100 times from there.
Ethereum on the other hand, will be able to keep its network secure with approximately 1-2% annual issuance being paid to stakers under ETH 2.0. This is because not all of the network will be staking, so if 33 million of the approximately 110 million Ether in existence stakes under ETH 2.0, then paying this 33 million Ether 6% a year (a very decent yield!) would cost just under 2 million ETH per year which would equate to less than 2% annual ETH inflation. This is also before considering EIP-1559 which will burn a portion of transaction fees which will counter the effect of this inflation and potentially even make ETH deflationary if the sum of all burned transaction fees are greater than the annual inflation. Also, under ETH 2.0, an attacker performing a 51% attack would get his funds slashed (they would lose their funds) if they attack the network, meaning that they can only perform a 51% attack once. However, in Bitcoin, anyone who controls 51% of the mining hash power could perform multiple 51% attacks without losing everything like they could in ETH 2.0.
So in conclusion, while Ethereum doesn’t have the guaranteed anti-inflation security of a hard cap, it does have the guarantee of always paying it’s miners (or stakers under ETH 2.0) enough to keep the network secure. In contrast, while Bitcoin’s social contract may guarantee a hard cap of 21 million, it cannot simultaneously guarantee network security in the long run. Eventually, its users will have to decide if they want a secure network with more than 21 million coins or a tax to pay for security or an insecure network with super high fees and a hard cap of 21 million Bitcoin.
Disclaimer: The details I covered around 51% attacks and network security are simplified. I am not an expert in this field and things are a lot more nuanced than I laid out in my simplifications above.
submitted by Tricky_Troll to ethfinance [link] [comments]

Ethereum mining pitfalls, risks, and threats

Bitcoin miners are massively switching to Ethereum. According to 8btc estimates, the payback period for a Bitcoin miner is 600 days, while for the same metric on Ether it only takes 200 days. But this goodness won’t last forever. Read about what threatens the development of Ethereum below.
Hardware and Filling – Halfway to Success
Experienced folks advise taking the most productive video cards, for example, the latest models from Nvidia and AMD. When choosing, pay attention to the amount of video memory (ideally from 2 GB), memory speed (with DDR 5 memory), bus width (better with a 256-bit bus), and cooling (basically there’s no competition to Radeon devices). Take Radeon RX 570, this 169 USD card produces 24-30 Mh/s, which is superb.
The Illusion of Stability
The entire multi-million community of Ether lovers trembled in early August when the Ethereum Classic network was subjected to several 51% attacks at once. In addition, in the first half of 2020 alone, over 5 attacks were carried out on popular DeFi platforms, including Balancer ($500,000 stolen) and bZx (17,500 ETH were stolen in total). Moreover, cybercriminals do not always use technical vulnerabilities, sometimes good old social engineering works.
Reduction of Reward
Ethereum developers have proposed to reduce the block mining reward by 75%. ConsenSys Managing Director John Leelik published the EIP-2878 proposal aimed at reducing inflation and preserving purchasing power. If supported, the reward will drop to 0.5 ETH.
The transition of ETH to ETH 2.0 (PoS)
We already wrote about this in the article "Problems of Ethereum Mining", and you can also watch the interview by Peter McCormack with the project founder Vitalik Buterin.
While the opportunity is still there, we offer everyone to get the most out of it and mine profitably. For example, take a closer look at the new CoinFLy ETH Pool, that nowadays offers more rewards than others, at least by 10%.
Profit That is Not Profit
A hidden and obvious problem is choosing the pool based on its profitability. If you only have a few capacities, then it is better to choose a pool that uses the PPS+ model, if you’ve got a lot of them, then a powerful pool with PPLNS is better. And if you’ve got so many capacities that there’s even enough for others, then you can also go SOLO, buddy. More details - here.
submitted by applesEgo to gpumining [link] [comments]

Minimum Viable Issuance - Why Ethereum’s lack of a hard cap on ETH issuance is a good thing.

This post will explain how the argument used by the average Bitcoin maximalist, thinking that they have found Ethereum’s achilles heel when talking about issuance is actually highlighting one of Ethereum’s strong points and one of the main threats to the longevity of the Bitcoin network.
So first let’s answer the question which I know many people have about Ethereum:

What is Ethereum’s ETH issuance schedule?

Ethereum has an issuance policy of Minimum Viable Issuance. So what does this mean exactly? It means that the issuance of ETH will be as low as possible while also maintaining a sufficient budget to pay miners (and soon to be stakers) to keep the network secure. For example, if ETH issuance was halved, miners would drop off the network and stop mining as it is no longer profitable for them to mine. As a result, the network would be less secure as it would cost less money for an attacker to control 51% of the hash power and attack the network. This means that the Ethereum community plans to change ETH issuance as time goes on to maintain a reasonable security budget which will keep the network secure but will also keep inflation in check. We have done this twice in the past with EIP-649 and EIP-1234 which reduced block rewards from 5 ETH per block to 3 ETH and from 3 ETH to 2 ETH respectively. I previously made a graph of ETH issuance over time here: https://redd.it/it8ce7
So while Ethereum doesn’t have a strictly defined issuance schedule, the community will reject any proposals which either put the security of the network at risk such as the recent EIP-2878, or we will reject proposals which will lead to excessive network security and therefore an unnecessarily high inflation rate (or we will accept proposals which reduce issuance after price rises and therefore the security budget rises). This means that when Bitcoiners accuse the Ethereum Foundation of being no better than a central bank because they can “print more Ether”, this is completely untrue. Any proposals made by the EF which would increase issuance unnecessarily would be rejected by the community in the same way that a proposal to increase the supply of Bitcoin from 21 million to 22 million would be rejected. There is a social contract around both Bitcoin’s and Ethereum’s issuance schedules. Any networks or proposals which break the social contracts of 21 million Bitcoins and minimal viable issuance of Ether would be a breach of these contracts and the new proposed network would be labeled by the community as illegitimate and the original network would live on.

So why is minimum viable issuance better than a hard cap?

Minimum viable issuance is better than a hard cap because it puts the most important part of the network first - the security. MVI ensures that the Ethereum network will always have a security budget which keeps the cost of a 51% attack impractically high. Bitcoin on the other hand, halves its security budget every 4 years until eventually only the transaction fees pay for network security. This means that every 4 years, the amount of money paying for network security halves until eventually, the value of attacking the network becomes greater than the security budget and someone performs a 51% attack (technically the security budget only halves if terms of BTC not in dollars. However, even if the price of Bitcoin more than doubles in the time that the security budget halves, the ratio of security budget to value secured on the network still halves, doubling the financial viability of performing a network attack). The strategy to pay for the security budget once Bitcoin issuance stops is for transaction fees to secure the network since transaction fees are paid to miners. Not only does this have its own security problems which I won’t detail here, but unless Bitcoin scales on layer 1 (layer 2 scaling solutions have their own security mechanisms separate from L1), then fees would have to cost well in the thousands of dollars to secure a trillion dollar market cap Bitcoin that is secured by nothing but fees. If Bitcoin maximalists want a 10 trillion or 100 trillion dollar market cap then expect fees to go up another 10 or 100 times from there.
Ethereum on the other hand, will be able to keep its network secure with approximately 1-2% annual issuance being paid to stakers under ETH 2.0. This is because not all of the network will be staking, so if 33 million of the approximately 110 million Ether in existence stakes under ETH 2.0, then paying this 33 million Ether 6% a year (a very decent yield!) would cost just under 2 million ETH per year which would equate to less than 2% annual ETH inflation. This is also before considering EIP-1559 which will burn a portion of transaction fees which will counter the effect of this inflation and potentially even make ETH deflationary if the sum of all burned transaction fees are greater than the annual inflation. Also, under ETH 2.0, an attacker performing a 51% attack would get his funds slashed (they would lose their funds) if they attack the network, meaning that they can only perform a 51% attack once. However, in Bitcoin, anyone who controls 51% of the mining hash power could perform multiple 51% attacks without losing everything like they could in ETH 2.0.
So in conclusion, while Ethereum doesn’t have the guaranteed anti-inflation security of a hard cap, it does have the guarantee of always paying it’s miners (or stakers under ETH 2.0) enough to keep the network secure. In contrast, while Bitcoin’s social contract may guarantee a hard cap of 21 million, it cannot simultaneously guarantee network security in the long run. Eventually, its users will have to decide if they want a secure network with more than 21 million coins or a tax to pay for security or an insecure network with super high fees and a hard cap of 21 million Bitcoin.
Disclaimer: The details I covered around 51% attacks and network security are simplified. I am not an expert in this field and things are a lot more nuanced than I laid out in my simplifications above.
submitted by Tricky_Troll to ethtrader [link] [comments]

Mining pitfalls, risks, and threats in Ethereum network

Bitcoin miners are massively switching to Ethereum. According to 8btc estimates, the payback period for a Bitcoin miner is 600 days, while for the same metric on Ether it only takes 200 days. But this goodness won’t last forever. Read about what threatens the development of Ethereum below.
Hardware and Filling – Halfway to Success
Experienced folks advise taking the most productive video cards, for example, the latest models from Nvidia and AMD. When choosing, pay attention to the amount of video memory (ideally from 2 GB), memory speed (with DDR 5 memory), bus width (better with a 256-bit bus), and cooling (basically there’s no competition to Radeon devices). Take Radeon RX 570, this 169 USD card produces 24-30 Mh/s, which is superb.
The Illusion of Stability
The entire multi-million community of Ether lovers trembled in early August when the Ethereum Classic network was subjected to several 51% attacks at once. In addition, in the first half of 2020 alone, over 5 attacks were carried out on popular DeFi platforms, including Balancer ($500,000 stolen) and bZx (17,500 ETH were stolen in total). Moreover, cybercriminals do not always use technical vulnerabilities, sometimes good old social engineering works.
Reduction of Reward
Ethereum developers have proposed to reduce the block mining reward by 75%. ConsenSys Managing Director John Leelik published the EIP-2878 proposal aimed at reducing inflation and preserving purchasing power. If supported, the reward will drop to 0.5 ETH.
The transition of ETH to ETH 2.0 (PoS)
We already wrote about this in the article "Problems of Ethereum Mining", and you can also watch the interview by Peter McCormack with the project founder Vitalik Buterin.
While the opportunity is still there, we offer everyone to get the most out of it and mine profitably. For example, take a closer look at the new CoinFLy ETH Pool, that nowadays offers more rewards than others, at least by 10%.
Profit That is Not Profit
A hidden and obvious problem is choosing the pool based on its profitability. If you only have a few capacities, then it is better to choose a pool that uses the PPS+ model, if you’ve got a lot of them, then a powerful pool with PPLNS is better. And if you’ve got so many capacities that there’s even enough for others, then you can also go SOLO, buddy. More details - here.
submitted by applesEgo to CryptoCurrencies [link] [comments]

About problems of Ethereum miners

Bitcoin miners are massively switching to Ethereum. According to 8btc estimates, the payback period for a Bitcoin miner is 600 days, while for the same metric on Ether it only takes 200 days. But this goodness won’t last forever. Read about what threatens the development of Ethereum below.
Hardware and Filling – Halfway to Success
Experienced folks advise taking the most productive video cards, for example, the latest models from Nvidia and AMD. When choosing, pay attention to the amount of video memory (ideally from 2 GB), memory speed (with DDR 5 memory), bus width (better with a 256-bit bus), and cooling (basically there’s no competition to Radeon devices). Take Radeon RX 570, this 169 USD card produces 24-30 Mh/s, which is superb.
The Illusion of Stability
The entire multi-million community of Ether lovers trembled in early August when the Ethereum Classic network was subjected to several 51% attacks at once. In addition, in the first half of 2020 alone, over 5 attacks were carried out on popular DeFi platforms, including Balancer ($500,000 stolen) and bZx (17,500 ETH were stolen in total). Moreover, cybercriminals do not always use technical vulnerabilities, sometimes good old social engineering works.
Reduction of Reward
Ethereum developers have proposed to reduce the block mining reward by 75%. ConsenSys Managing Director John Leelik published the EIP-2878 proposal aimed at reducing inflation and preserving purchasing power. If supported, the reward will drop to 0.5 ETH.
The transition of ETH to ETH 2.0 (PoS)
We already wrote about this in the article "Problems of Ethereum Mining", and you can also watch the interview by Peter McCormack with the project founder Vitalik Buterin.
While the opportunity is still there, we offer everyone to get the most out of it and mine profitably. For example, take a closer look at the new CoinFLy ETH Pool, that nowadays offers more rewards than others, at least by 10%.
Profit That is Not Profit
A hidden and obvious problem is choosing the pool based on its profitability. If you only have a few capacities, then it is better to choose a pool that uses the PPS+ model, if you’ve got a lot of them, then a powerful pool with PPLNS is better. And if you’ve got so many capacities that there’s even enough for others, then you can also go SOLO, buddy. More details - here.
submitted by applesEgo to ethtrader [link] [comments]

Why i’m bullish on Zilliqa (long read)

Edit: TL;DR added in the comments
 
Hey all, I've been researching coins since 2017 and have gone through 100s of them in the last 3 years. I got introduced to blockchain via Bitcoin of course, analyzed Ethereum thereafter and from that moment I have a keen interest in smart contact platforms. I’m passionate about Ethereum but I find Zilliqa to have a better risk-reward ratio. Especially because Zilliqa has found an elegant balance between being secure, decentralized and scalable in my opinion.
 
Below I post my analysis of why from all the coins I went through I’m most bullish on Zilliqa (yes I went through Tezos, EOS, NEO, VeChain, Harmony, Algorand, Cardano etc.). Note that this is not investment advice and although it's a thorough analysis there is obviously some bias involved. Looking forward to what you all think!
 
Fun fact: the name Zilliqa is a play on ‘silica’ silicon dioxide which means “Silicon for the high-throughput consensus computer.”
 
This post is divided into (i) Technology, (ii) Business & Partnerships, and (iii) Marketing & Community. I’ve tried to make the technology part readable for a broad audience. If you’ve ever tried understanding the inner workings of Bitcoin and Ethereum you should be able to grasp most parts. Otherwise, just skim through and once you are zoning out head to the next part.
 
Technology and some more:
 
Introduction
 
The technology is one of the main reasons why I’m so bullish on Zilliqa. First thing you see on their website is: “Zilliqa is a high-performance, high-security blockchain platform for enterprises and next-generation applications.” These are some bold statements.
 
Before we deep dive into the technology let’s take a step back in time first as they have quite the history. The initial research paper from which Zilliqa originated dates back to August 2016: Elastico: A Secure Sharding Protocol For Open Blockchains where Loi Luu (Kyber Network) is one of the co-authors. Other ideas that led to the development of what Zilliqa has become today are: Bitcoin-NG, collective signing CoSi, ByzCoin and Omniledger.
 
The technical white paper was made public in August 2017 and since then they have achieved everything stated in the white paper and also created their own open source intermediate level smart contract language called Scilla (functional programming language similar to OCaml) too.
 
Mainnet is live since the end of January 2019 with daily transaction rates growing continuously. About a week ago mainnet reached 5 million transactions, 500.000+ addresses in total along with 2400 nodes keeping the network decentralized and secure. Circulating supply is nearing 11 billion and currently only mining rewards are left. The maximum supply is 21 billion with annual inflation being 7.13% currently and will only decrease with time.
 
Zilliqa realized early on that the usage of public cryptocurrencies and smart contracts were increasing but decentralized, secure, and scalable alternatives were lacking in the crypto space. They proposed to apply sharding onto a public smart contract blockchain where the transaction rate increases almost linear with the increase in the amount of nodes. More nodes = higher transaction throughput and increased decentralization. Sharding comes in many forms and Zilliqa uses network-, transaction- and computational sharding. Network sharding opens up the possibility of using transaction- and computational sharding on top. Zilliqa does not use state sharding for now. We’ll come back to this later.
 
Before we continue dissecting how Zilliqa achieves such from a technological standpoint it’s good to keep in mind that a blockchain being decentralised and secure and scalable is still one of the main hurdles in allowing widespread usage of decentralised networks. In my opinion this needs to be solved first before blockchains can get to the point where they can create and add large scale value. So I invite you to read the next section to grasp the underlying fundamentals. Because after all these premises need to be true otherwise there isn’t a fundamental case to be bullish on Zilliqa, right?
 
Down the rabbit hole
 
How have they achieved this? Let’s define the basics first: key players on Zilliqa are the users and the miners. A user is anybody who uses the blockchain to transfer funds or run smart contracts. Miners are the (shard) nodes in the network who run the consensus protocol and get rewarded for their service in Zillings (ZIL). The mining network is divided into several smaller networks called shards, which is also referred to as ‘network sharding’. Miners subsequently are randomly assigned to a shard by another set of miners called DS (Directory Service) nodes. The regular shards process transactions and the outputs of these shards are eventually combined by the DS shard as they reach consensus on the final state. More on how these DS shards reach consensus (via pBFT) will be explained later on.
 
The Zilliqa network produces two types of blocks: DS blocks and Tx blocks. One DS Block consists of 100 Tx Blocks. And as previously mentioned there are two types of nodes concerned with reaching consensus: shard nodes and DS nodes. Becoming a shard node or DS node is being defined by the result of a PoW cycle (Ethash) at the beginning of the DS Block. All candidate mining nodes compete with each other and run the PoW (Proof-of-Work) cycle for 60 seconds and the submissions achieving the highest difficulty will be allowed on the network. And to put it in perspective: the average difficulty for one DS node is ~ 2 Th/s equaling 2.000.000 Mh/s or 55 thousand+ GeForce GTX 1070 / 8 GB GPUs at 35.4 Mh/s. Each DS Block 10 new DS nodes are allowed. And a shard node needs to provide around 8.53 GH/s currently (around 240 GTX 1070s). Dual mining ETH/ETC and ZIL is possible and can be done via mining software such as Phoenix and Claymore. There are pools and if you have large amounts of hashing power (Ethash) available you could mine solo.
 
The PoW cycle of 60 seconds is a peak performance and acts as an entry ticket to the network. The entry ticket is called a sybil resistance mechanism and makes it incredibly hard for adversaries to spawn lots of identities and manipulate the network with these identities. And after every 100 Tx Blocks which corresponds to roughly 1,5 hour this PoW process repeats. In between these 1,5 hour, no PoW needs to be done meaning Zilliqa’s energy consumption to keep the network secure is low. For more detailed information on how mining works click here.
Okay, hats off to you. You have made it this far. Before we go any deeper down the rabbit hole we first must understand why Zilliqa goes through all of the above technicalities and understand a bit more what a blockchain on a more fundamental level is. Because the core of Zilliqa’s consensus protocol relies on the usage of pBFT (practical Byzantine Fault Tolerance) we need to know more about state machines and their function. Navigate to Viewblock, a Zilliqa block explorer, and just come back to this article. We will use this site to navigate through a few concepts.
 
We have established that Zilliqa is a public and distributed blockchain. Meaning that everyone with an internet connection can send ZILs, trigger smart contracts, etc. and there is no central authority who fully controls the network. Zilliqa and other public and distributed blockchains (like Bitcoin and Ethereum) can also be defined as state machines.
 
Taking the liberty of paraphrasing examples and definitions given by Samuel Brooks’ medium article, he describes the definition of a blockchain (like Zilliqa) as: “A peer-to-peer, append-only datastore that uses consensus to synchronize cryptographically-secure data”.
 
Next, he states that: "blockchains are fundamentally systems for managing valid state transitions”. For some more context, I recommend reading the whole medium article to get a better grasp of the definitions and understanding of state machines. Nevertheless, let’s try to simplify and compile it into a single paragraph. Take traffic lights as an example: all its states (red, amber, and green) are predefined, all possible outcomes are known and it doesn’t matter if you encounter the traffic light today or tomorrow. It will still behave the same. Managing the states of a traffic light can be done by triggering a sensor on the road or pushing a button resulting in one traffic lights’ state going from green to red (via amber) and another light from red to green.
 
With public blockchains like Zilliqa, this isn’t so straightforward and simple. It started with block #1 almost 1,5 years ago and every 45 seconds or so a new block linked to the previous block is being added. Resulting in a chain of blocks with transactions in it that everyone can verify from block #1 to the current #647.000+ block. The state is ever changing and the states it can find itself in are infinite. And while the traffic light might work together in tandem with various other traffic lights, it’s rather insignificant comparing it to a public blockchain. Because Zilliqa consists of 2400 nodes who need to work together to achieve consensus on what the latest valid state is while some of these nodes may have latency or broadcast issues, drop offline or are deliberately trying to attack the network, etc.
 
Now go back to the Viewblock page take a look at the amount of transaction, addresses, block and DS height and then hit refresh. Obviously as expected you see new incremented values on one or all parameters. And how did the Zilliqa blockchain manage to transition from a previous valid state to the latest valid state? By using pBFT to reach consensus on the latest valid state.
 
After having obtained the entry ticket, miners execute pBFT to reach consensus on the ever-changing state of the blockchain. pBFT requires a series of network communication between nodes, and as such there is no GPU involved (but CPU). Resulting in the total energy consumed to keep the blockchain secure, decentralized and scalable being low.
 
pBFT stands for practical Byzantine Fault Tolerance and is an optimization on the Byzantine Fault Tolerant algorithm. To quote Blockonomi: “In the context of distributed systems, Byzantine Fault Tolerance is the ability of a distributed computer network to function as desired and correctly reach a sufficient consensus despite malicious components (nodes) of the system failing or propagating incorrect information to other peers.” Zilliqa is such a distributed computer network and depends on the honesty of the nodes (shard and DS) to reach consensus and to continuously update the state with the latest block. If pBFT is a new term for you I can highly recommend the Blockonomi article.
 
The idea of pBFT was introduced in 1999 - one of the authors even won a Turing award for it - and it is well researched and applied in various blockchains and distributed systems nowadays. If you want more advanced information than the Blockonomi link provides click here. And if you’re in between Blockonomi and the University of Singapore read the Zilliqa Design Story Part 2 dating from October 2017.
Quoting from the Zilliqa tech whitepaper: “pBFT relies upon a correct leader (which is randomly selected) to begin each phase and proceed when the sufficient majority exists. In case the leader is byzantine it can stall the entire consensus protocol. To address this challenge, pBFT offers a view change protocol to replace the byzantine leader with another one.”
 
pBFT can tolerate ⅓ of the nodes being dishonest (offline counts as Byzantine = dishonest) and the consensus protocol will function without stalling or hiccups. Once there are more than ⅓ of dishonest nodes but no more than ⅔ the network will be stalled and a view change will be triggered to elect a new DS leader. Only when more than ⅔ of the nodes are dishonest (66%) double-spend attacks become possible.
 
If the network stalls no transactions can be processed and one has to wait until a new honest leader has been elected. When the mainnet was just launched and in its early phases, view changes happened regularly. As of today the last stalling of the network - and view change being triggered - was at the end of October 2019.
 
Another benefit of using pBFT for consensus besides low energy is the immediate finality it provides. Once your transaction is included in a block and the block is added to the chain it’s done. Lastly, take a look at this article where three types of finality are being defined: probabilistic, absolute and economic finality. Zilliqa falls under the absolute finality (just like Tendermint for example). Although lengthy already we skipped through some of the inner workings from Zilliqa’s consensus: read the Zilliqa Design Story Part 3 and you will be close to having a complete picture on it. Enough about PoW, sybil resistance mechanism, pBFT, etc. Another thing we haven’t looked at yet is the amount of decentralization.
 
Decentralisation
 
Currently, there are four shards, each one of them consisting of 600 nodes. 1 shard with 600 so-called DS nodes (Directory Service - they need to achieve a higher difficulty than shard nodes) and 1800 shard nodes of which 250 are shard guards (centralized nodes controlled by the team). The amount of shard guards has been steadily declining from 1200 in January 2019 to 250 as of May 2020. On the Viewblock statistics, you can see that many of the nodes are being located in the US but those are only the (CPU parts of the) shard nodes who perform pBFT. There is no data from where the PoW sources are coming. And when the Zilliqa blockchain starts reaching its transaction capacity limit, a network upgrade needs to be executed to lift the current cap of maximum 2400 nodes to allow more nodes and formation of more shards which will allow to network to keep on scaling according to demand.
Besides shard nodes there are also seed nodes. The main role of seed nodes is to serve as direct access points (for end-users and clients) to the core Zilliqa network that validates transactions. Seed nodes consolidate transaction requests and forward these to the lookup nodes (another type of nodes) for distribution to the shards in the network. Seed nodes also maintain the entire transaction history and the global state of the blockchain which is needed to provide services such as block explorers. Seed nodes in the Zilliqa network are comparable to Infura on Ethereum.
 
The seed nodes were first only operated by Zilliqa themselves, exchanges and Viewblock. Operators of seed nodes like exchanges had no incentive to open them for the greater public. They were centralised at first. Decentralisation at the seed nodes level has been steadily rolled out since March 2020 ( Zilliqa Improvement Proposal 3 ). Currently the amount of seed nodes is being increased, they are public-facing and at the same time PoS is applied to incentivize seed node operators and make it possible for ZIL holders to stake and earn passive yields. Important distinction: seed nodes are not involved with consensus! That is still PoW as entry ticket and pBFT for the actual consensus.
 
5% of the block rewards are being assigned to seed nodes (from the beginning in 2019) and those are being used to pay out ZIL stakers. The 5% block rewards with an annual yield of 10.03% translate to roughly 610 MM ZILs in total that can be staked. Exchanges use the custodial variant of staking and wallets like Moonlet will use the non-custodial version (starting in Q3 2020). Staking is being done by sending ZILs to a smart contract created by Zilliqa and audited by Quantstamp.
 
With a high amount of DS; shard nodes and seed nodes becoming more decentralized too, Zilliqa qualifies for the label of decentralized in my opinion.
 
Smart contracts
 
Let me start by saying I’m not a developer and my programming skills are quite limited. So I‘m taking the ELI5 route (maybe 12) but if you are familiar with Javascript, Solidity or specifically OCaml please head straight to Scilla - read the docs to get a good initial grasp of how Zilliqa’s smart contract language Scilla works and if you ask yourself “why another programming language?” check this article. And if you want to play around with some sample contracts in an IDE click here. The faucet can be found here. And more information on architecture, dapp development and API can be found on the Developer Portal.
If you are more into listening and watching: check this recent webinar explaining Zilliqa and Scilla. Link is time-stamped so you’ll start right away with a platform introduction, roadmap 2020 and afterwards a proper Scilla introduction.
 
Generalized: programming languages can be divided into being ‘object-oriented’ or ‘functional’. Here is an ELI5 given by software development academy: * “all programs have two basic components, data – what the program knows – and behavior – what the program can do with that data. So object-oriented programming states that combining data and related behaviors in one place, is called “object”, which makes it easier to understand how a particular program works. On the other hand, functional programming argues that data and behavior are different things and should be separated to ensure their clarity.” *
 
Scilla is on the functional side and shares similarities with OCaml: OCaml is a general-purpose programming language with an emphasis on expressiveness and safety. It has an advanced type system that helps catch your mistakes without getting in your way. It's used in environments where a single mistake can cost millions and speed matters, is supported by an active community, and has a rich set of libraries and development tools. For all its power, OCaml is also pretty simple, which is one reason it's often used as a teaching language.
 
Scilla is blockchain agnostic, can be implemented onto other blockchains as well, is recognized by academics and won a so-called Distinguished Artifact Award award at the end of last year.
 
One of the reasons why the Zilliqa team decided to create their own programming language focused on preventing smart contract vulnerabilities is that adding logic on a blockchain, programming, means that you cannot afford to make mistakes. Otherwise, it could cost you. It’s all great and fun blockchains being immutable but updating your code because you found a bug isn’t the same as with a regular web application for example. And with smart contracts, it inherently involves cryptocurrencies in some form thus value.
 
Another difference with programming languages on a blockchain is gas. Every transaction you do on a smart contract platform like Zilliqa or Ethereum costs gas. With gas you basically pay for computational costs. Sending a ZIL from address A to address B costs 0.001 ZIL currently. Smart contracts are more complex, often involve various functions and require more gas (if gas is a new concept click here ).
 
So with Scilla, similar to Solidity, you need to make sure that “every function in your smart contract will run as expected without hitting gas limits. An improper resource analysis may lead to situations where funds may get stuck simply because a part of the smart contract code cannot be executed due to gas limits. Such constraints are not present in traditional software systems”. Scilla design story part 1
 
Some examples of smart contract issues you’d want to avoid are: leaking funds, ‘unexpected changes to critical state variables’ (example: someone other than you setting his or her address as the owner of the smart contract after creation) or simply killing a contract.
 
Scilla also allows for formal verification. Wikipedia to the rescue: In the context of hardware and software systems, formal verification is the act of proving or disproving the correctness of intended algorithms underlying a system with respect to a certain formal specification or property, using formal methods of mathematics.
 
Formal verification can be helpful in proving the correctness of systems such as: cryptographic protocols, combinational circuits, digital circuits with internal memory, and software expressed as source code.
 
Scilla is being developed hand-in-hand with formalization of its semantics and its embedding into the Coq proof assistant — a state-of-the art tool for mechanized proofs about properties of programs.”
 
Simply put, with Scilla and accompanying tooling developers can be mathematically sure and proof that the smart contract they’ve written does what he or she intends it to do.
 
Smart contract on a sharded environment and state sharding
 
There is one more topic I’d like to touch on: smart contract execution in a sharded environment (and what is the effect of state sharding). This is a complex topic. I’m not able to explain it any easier than what is posted here. But I will try to compress the post into something easy to digest.
 
Earlier on we have established that Zilliqa can process transactions in parallel due to network sharding. This is where the linear scalability comes from. We can define simple transactions: a transaction from address A to B (Category 1), a transaction where a user interacts with one smart contract (Category 2) and the most complex ones where triggering a transaction results in multiple smart contracts being involved (Category 3). The shards are able to process transactions on their own without interference of the other shards. With Category 1 transactions that is doable, with Category 2 transactions sometimes if that address is in the same shard as the smart contract but with Category 3 you definitely need communication between the shards. Solving that requires to make a set of communication rules the protocol needs to follow in order to process all transactions in a generalised fashion.
 
And this is where the downsides of state sharding comes in currently. All shards in Zilliqa have access to the complete state. Yes the state size (0.1 GB at the moment) grows and all of the nodes need to store it but it also means that they don’t need to shop around for information available on other shards. Requiring more communication and adding more complexity. Computer science knowledge and/or developer knowledge required links if you want to dig further: Scilla - language grammar Scilla - Foundations for Verifiable Decentralised Computations on a Blockchain Gas Accounting NUS x Zilliqa: Smart contract language workshop
 
Easier to follow links on programming Scilla https://learnscilla.com/home Ivan on Tech
 
Roadmap / Zilliqa 2.0
 
There is no strict defined roadmap but here are topics being worked on. And via the Zilliqa website there is also more information on the projects they are working on.
 
Business & Partnerships
 
It’s not only technology in which Zilliqa seems to be excelling as their ecosystem has been expanding and starting to grow rapidly. The project is on a mission to provide OpenFinance (OpFi) to the world and Singapore is the right place to be due to its progressive regulations and futuristic thinking. Singapore has taken a proactive approach towards cryptocurrencies by introducing the Payment Services Act 2019 (PS Act). Among other things, the PS Act will regulate intermediaries dealing with certain cryptocurrencies, with a particular focus on consumer protection and anti-money laundering. It will also provide a stable regulatory licensing and operating framework for cryptocurrency entities, effectively covering all crypto businesses and exchanges based in Singapore. According to PWC 82% of the surveyed executives in Singapore reported blockchain initiatives underway and 13% of them have already brought the initiatives live to the market. There is also an increasing list of organizations that are starting to provide digital payment services. Moreover, Singaporean blockchain developers Building Cities Beyond has recently created an innovation $15 million grant to encourage development on its ecosystem. This all suggests that Singapore tries to position itself as (one of) the leading blockchain hubs in the world.
 
Zilliqa seems to already take advantage of this and recently helped launch Hg Exchange on their platform, together with financial institutions PhillipCapital, PrimePartners and Fundnel. Hg Exchange, which is now approved by the Monetary Authority of Singapore (MAS), uses smart contracts to represent digital assets. Through Hg Exchange financial institutions worldwide can use Zilliqa's safe-by-design smart contracts to enable the trading of private equities. For example, think of companies such as Grab, Airbnb, SpaceX that are not available for public trading right now. Hg Exchange will allow investors to buy shares of private companies & unicorns and capture their value before an IPO. Anquan, the main company behind Zilliqa, has also recently announced that they became a partner and shareholder in TEN31 Bank, which is a fully regulated bank allowing for tokenization of assets and is aiming to bridge the gap between conventional banking and the blockchain world. If STOs, the tokenization of assets, and equity trading will continue to increase, then Zilliqa’s public blockchain would be the ideal candidate due to its strategic positioning, partnerships, regulatory compliance and the technology that is being built on top of it.
 
What is also very encouraging is their focus on banking the un(der)banked. They are launching a stablecoin basket starting with XSGD. As many of you know, stablecoins are currently mostly used for trading. However, Zilliqa is actively trying to broaden the use case of stablecoins. I recommend everybody to read this text that Amrit Kumar wrote (one of the co-founders). These stablecoins will be integrated in the traditional markets and bridge the gap between the crypto world and the traditional world. This could potentially revolutionize and legitimise the crypto space if retailers and companies will for example start to use stablecoins for payments or remittances, instead of it solely being used for trading.
 
Zilliqa also released their DeFi strategic roadmap (dating November 2019) which seems to be aligning well with their OpFi strategy. A non-custodial DEX is coming to Zilliqa made by Switcheo which allows cross-chain trading (atomic swaps) between ETH, EOS and ZIL based tokens. They also signed a Memorandum of Understanding for a (soon to be announced) USD stablecoin. And as Zilliqa is all about regulations and being compliant, I’m speculating on it to be a regulated USD stablecoin. Furthermore, XSGD is already created and visible on block explorer and XIDR (Indonesian Stablecoin) is also coming soon via StraitsX. Here also an overview of the Tech Stack for Financial Applications from September 2019. Further quoting Amrit Kumar on this:
 
There are two basic building blocks in DeFi/OpFi though: 1) stablecoins as you need a non-volatile currency to get access to this market and 2) a dex to be able to trade all these financial assets. The rest are built on top of these blocks.
 
So far, together with our partners and community, we have worked on developing these building blocks with XSGD as a stablecoin. We are working on bringing a USD-backed stablecoin as well. We will soon have a decentralised exchange developed by Switcheo. And with HGX going live, we are also venturing into the tokenization space. More to come in the future.”
 
Additionally, they also have this ZILHive initiative that injects capital into projects. There have been already 6 waves of various teams working on infrastructure, innovation and research, and they are not from ASEAN or Singapore only but global: see Grantees breakdown by country. Over 60 project teams from over 20 countries have contributed to Zilliqa's ecosystem. This includes individuals and teams developing wallets, explorers, developer toolkits, smart contract testing frameworks, dapps, etc. As some of you may know, Unstoppable Domains (UD) blew up when they launched on Zilliqa. UD aims to replace cryptocurrency addresses with a human-readable name and allows for uncensorable websites. Zilliqa will probably be the only one able to handle all these transactions onchain due to ability to scale and its resulting low fees which is why the UD team launched this on Zilliqa in the first place. Furthermore, Zilliqa also has a strong emphasis on security, compliance, and privacy, which is why they partnered with companies like Elliptic, ChainSecurity (part of PwC Switzerland), and Incognito. Their sister company Aqilliz (Zilliqa spelled backwards) focuses on revolutionizing the digital advertising space and is doing interesting things like using Zilliqa to track outdoor digital ads with companies like Foodpanda.
 
Zilliqa is listed on nearly all major exchanges, having several different fiat-gateways and recently have been added to Binance’s margin trading and futures trading with really good volume. They also have a very impressive team with good credentials and experience. They don't just have “tech people”. They have a mix of tech people, business people, marketeers, scientists, and more. Naturally, it's good to have a mix of people with different skill sets if you work in the crypto space.
 
Marketing & Community
 
Zilliqa has a very strong community. If you just follow their Twitter their engagement is much higher for a coin that has approximately 80k followers. They also have been ‘coin of the day’ by LunarCrush many times. LunarCrush tracks real-time cryptocurrency value and social data. According to their data, it seems Zilliqa has a more fundamental and deeper understanding of marketing and community engagement than almost all other coins. While almost all coins have been a bit frozen in the last months, Zilliqa seems to be on its own bull run. It was somewhere in the 100s a few months ago and is currently ranked #46 on CoinGecko. Their official Telegram also has over 20k people and is very active, and their community channel which is over 7k now is more active and larger than many other official channels. Their local communities also seem to be growing.
 
Moreover, their community started ‘Zillacracy’ together with the Zilliqa core team ( see www.zillacracy.com ). It’s a community-run initiative where people from all over the world are now helping with marketing and development on Zilliqa. Since its launch in February 2020 they have been doing a lot and will also run their own non-custodial seed node for staking. This seed node will also allow them to start generating revenue for them to become a self sustaining entity that could potentially scale up to become a decentralized company working in parallel with the Zilliqa core team. Comparing it to all the other smart contract platforms (e.g. Cardano, EOS, Tezos etc.) they don't seem to have started a similar initiative (correct me if I’m wrong though). This suggests in my opinion that these other smart contract platforms do not fully understand how to utilize the ‘power of the community’. This is something you cannot ‘buy with money’ and gives many projects in the space a disadvantage.
 
Zilliqa also released two social products called SocialPay and Zeeves. SocialPay allows users to earn ZILs while tweeting with a specific hashtag. They have recently used it in partnership with the Singapore Red Cross for a marketing campaign after their initial pilot program. It seems like a very valuable social product with a good use case. I can see a lot of traditional companies entering the space through this product, which they seem to suggest will happen. Tokenizing hashtags with smart contracts to get network effect is a very smart and innovative idea.
 
Regarding Zeeves, this is a tipping bot for Telegram. They already have 1000s of signups and they plan to keep upgrading it for more and more people to use it (e.g. they recently have added a quiz features). They also use it during AMAs to reward people in real-time. It’s a very smart approach to grow their communities and get familiar with ZIL. I can see this becoming very big on Telegram. This tool suggests, again, that the Zilliqa team has a deeper understanding of what the crypto space and community needs and is good at finding the right innovative tools to grow and scale.
 
To be honest, I haven’t covered everything (i’m also reaching the character limited haha). So many updates happening lately that it's hard to keep up, such as the International Monetary Fund mentioning Zilliqa in their report, custodial and non-custodial Staking, Binance Margin, Futures, Widget, entering the Indian market, and more. The Head of Marketing Colin Miles has also released this as an overview of what is coming next. And last but not least, Vitalik Buterin has been mentioning Zilliqa lately acknowledging Zilliqa and mentioning that both projects have a lot of room to grow. There is much more info of course and a good part of it has been served to you on a silver platter. I invite you to continue researching by yourself :-) And if you have any comments or questions please post here!
submitted by haveyouheardaboutit to CryptoCurrency [link] [comments]

Ethereum mining pitfalls, risks, and threats

Bitcoin miners are massively switching to Ethereum. According to 8btc estimates, the payback period for a Bitcoin miner is 600 days, while for the same metric on Ether it only takes 200 days. But this goodness won’t last forever. Read about what threatens the development of Ethereum below.
Hardware and Filling – Halfway to Success
Experienced folks advise taking the most productive video cards, for example, the latest models from Nvidia and AMD. When choosing, pay attention to the amount of video memory (ideally from 2 GB), memory speed (with DDR 5 memory), bus width (better with a 256-bit bus), and cooling (basically there’s no competition to Radeon devices). Take Radeon RX 570, this 169 USD card produces 24-30 Mh/s, which is superb.
The Illusion of Stability
The entire multi-million community of Ether lovers trembled in early August when the Ethereum Classic network was subjected to several 51% attacks at once. In addition, in the first half of 2020 alone, over 5 attacks were carried out on popular DeFi platforms, including Balancer ($500,000 stolen) and bZx (17,500 ETH were stolen in total). Moreover, cybercriminals do not always use technical vulnerabilities, sometimes good old social engineering works.
Reduction of Reward
Ethereum developers have proposed to reduce the block mining reward by 75%. ConsenSys Managing Director John Leelik published the EIP-2878 proposal aimed at reducing inflation and preserving purchasing power. If supported, the reward will drop to 0.5 ETH.
The transition of ETH to ETH 2.0 (PoS)
We already wrote about this in the article "Problems of Ethereum Mining", and you can also watch the interview by Peter McCormack with the project founder Vitalik Buterin.
While the opportunity is still there, we offer everyone to get the most out of it and mine profitably. For example, take a closer look at the new CoinFLy ETH Pool, that nowadays offers more rewards than others, at least by 10%.
Profit That is Not Profit
A hidden and obvious problem is choosing the pool based on its profitability. If you only have a few capacities, then it is better to choose a pool that uses the PPS+ model, if you’ve got a lot of them, then a powerful pool with PPLNS is better. And if you’ve got so many capacities that there’s even enough for others, then you can also go SOLO, buddy. More details - here.
submitted by applesEgo to Metaverse_Blockchain [link] [comments]

Vitalik dropped a bombshell on us when said that "high fees make Ethereum less secure". I explored what that means, why it's true, and what it means for the future of blockchains

The source of this is: https://twitter.com/VitalikButerin/status/1285593115672358912
And in particular, he links to: https://www.cs.princeton.edu/~arvindn/publications/mining_CCS.pdf
I am: an Ethereum entrepreneur working full time on https://flowerpatch.app, an indie game
When I first read that tweet, I was really surprised. We've been thinking since the start of Bitcoin that fees would gradually become the long-term thing that sustains miners. We were told that paying miners = security for the network
Overview:
The btc whitepaper explained that the block rewards would go down, slowly over time. Ethereum is modeled on this concept too, though has no fixed cap. Then: big blocks are good, because big blocks = more fees. However, looking back at this idea now, we see that there was a fair bit of hand-waving in this transition, and a new scalability problem becomes clear:
  • Up until recently, blocks have basically always had the same value per block. It turns out that this was a very important game theory assumption!
  • As fees begin to dominate the miners' revenue, we enter into a world where some blocks are very valuable, and some blocks not so much
  • An additional problem, especially in Bitcoin, is the "exponential time variance" in block mining. Sometimes, there's just no blocks for an hour
  • Miners always have the option to "fork" a blockchain. As we start to have high variance in the value of blocks, it becomes much more logical to try to fork valuable blocks instead of building on top of them. The paper states this as: "it becomes attractive to fork a “wealthy” block to “steal” the rewards therein". You can incentivize other miners to "join in" on your theft-fork by not taking all of fee revenue (i.e. not including all the transactions), leaving some for others that wish to follow you into the dark world. The paper provides an illustration: https://i.imgur.com/I2K9QDd.jpg
  • The paper also outlines several other "bad actor" strategies that miners can use. Increasingly, as blocks become irregular, and more "evil" strategies start to creep in, this actually opens the door to further bad actors, and collusion
  • One key quote from the paper: "Without a block reward, immediately after a block is found there is zero expected reward for mining but nonzero electricity cost, making it unprofitable for any miner to mine." — this leads to another class of game theory issues, where miners have no reason to start mining until transactions start to pile up, but still have to pay electricity fees. The world has changed since the btc whitepaper: various schemes for mining multiple currencies at once, or quickly switching to alternate networks, become available. Miners may choose to switch off their equipment, or switch networks for a while, instead of waiting for transactions to pile up. They call this phenomenon "mining gaps"
Their conclusion:
Impact on Bitcoin security. If any of the deviant mining strategies we explore were to be deployed, the impact on Bitcoin’s security would be serious. At best, the block chain will have a significant fraction of stale or orphaned blocks due to constant forks, making 51% attacks much easier and increasing the transaction confirmation time. At worst, consensus will break down due to block withholding or increasingly aggressive undercutting.
How this affects Ethereum:
  • Ethereum has, like Bitcoin, been slowly reducing its block rewards
  • Today, as Vitalik said, we had fees make up 40-50% of the block rewards
  • This actually introduces a new scalability issue — if we increase the blocksize by 4, even if the network could handle that, we could have a situation where fees make up 200% of the block reward (50% x 4). This would start to seriously undercut Ethereum's security, as the tweet alluded
  • This issue is not purely hypothetical, but could really happen, if fees hit a sustained 100-300Gwei — on today's eth1 network! Even without extra blockspace! We could start seeing these mining strategies appearing soon
How we fix this:
  • As Vitalik mentioned, EIP-1559 does largely solve this issue. That's all the reason we need to include this EIP. Burning fees is the key to fixing the game theory. But if nothing else, you can achieve a 0% inflation rate while still issuing block rewards, as long as enough eth is burned
  • ETH2 is not susceptible to these issues, because mining rewards are shared, rather than adversarial. The years of game theory research were worth it
What happens with Bitcoin:
Well, this probably won't be an issue for quite a while, because BTC's rewards will only slowly dwindle over the next 100 years. However, they have a strict policy around this. BTC was always meant to have a totally fixed cap, and that's a big part of their "digital gold" narrative. What happens if the price of BTC tanks while the network is at capacity and has high fee revenue? They could start seeing issues pretty soon, especially with the abundance of other coins using the same mining hardware. There's already a fair bit of miners that jump between BTC/BCH/BSV based on profitability, so the "mining gaps" we discussed earlier could become more prevalent
submitted by hugelung to ethereum [link] [comments]

A series of 51% attacks puts Ethereum Classic’s security into question

A series of 51% attacks puts Ethereum Classic’s security into question
An adversary performed a successful 51% attack on the Ethereum Classic (ETC) network between July 31 and August 1. The hacker was able to steal around $5.6 million worth of ETC from the OKEx crypto exchange, according to Bitquery.
Later, on August 6, the attacker used the same scheme to double-spend an additional $1.68 million worth of ETC. This time the targets were Bitfinex and another unidentified crypto service.
The necessary hash power for these double-spend attacks was rented on cloud mining marketplace NiceHash — which was also used during a recent 51% attack attempt on Bitcoin Gold (BTG). The team behind BTG mitigated the attack by asking miners to follow the so-called “honest” chain instead of the longest one, basically censoring attacker’s blocks.
Such controversial measures, however, would be against Ethereum Classic’s core principles of decentralization and censorship-resistance, so it’s unclear how the community is planning to deal with similar attacks in the future. Meanwhile, US-based crypto exchange Coinbase increased the confirmation time for ETC deposits to roughly 2 weeks.
The second 51% attack on ETC didn’t have any significant impact on its price, though. One of the reasons for such a small market change, among other things, is that 10% of all ETC supply is held in a regulated trust run by Grayscale Investments, which also funds the development of Ethereum Classic, according to CoinDesk. Both Grayscale and CoinDesk are subsidiaries of American venture capital company Digital Currency Group (DCG) founded by Barry Silbert, a long-time supporter of ETC.
Given the very low cost of a 51% attack against ETC, Vitalik Buterin suggested that switching to a proof-of-stake consensus algorithm would be a lower-risk strategy for Ethereum Classic, than using a proof-of-work algorithm. Ethereum Classic originated in 2016 as a hard fork of Ethereum, when the latter’s community made a controversial decision to reverse the DAO hack, which sparked discussions about network’s censorship-resistance.
submitted by Crypto-Angel to EthereumClassic [link] [comments]

the year 2020 in Bitcoin Cash so far: a detailed history

the year 2020 in Bitcoin Cash so far: a detailed history
What follows at the bottom is a four page long chronological overview of what happened in BCH in 2020 so far. To make it more digestable and fun to read I start with my narrating of the story.
My attempt was to remain as objective as possible and "let the facts speak for themselve" with everything sourced. I also link to many read.cash articles, the decision of which are the important ones to include is certainly not easy, I count on the rest of the community if I overlooked anything important.

summary & my narrating of the story:
The year started out relatively calm, with cashfusion in "the news" and an older ongoing controversy between Amaury and Roger Ver being worked out. Starting Jan 22nd all debate broke loose with the announcement of “Infrastructure Funding Plan for Bitcoin Cash” by Jiang Zhuoer of BTC.TOP. To illustrate this point 2 days later coinspice ran the title " Roger Ver Praises Vigorous Debate, [...]" and 6 days, less than a week, later Chris Pacia made a read.cash post titled "The 253rd "Thoughts on developer funding" Article" which might have been only a slight exaggeration or he might have been counting. Part of the reason of the tsunami was the lack of worked out details. By the time of Pacia's post a lot had changed: Both BU, Bitcoin Verde and a group of miners had made announcements not to go along with "the plan".
On feb 1st, the second version of the IFP was announced by Jiang Zhuoer in a post “BCH miner donation plan update”. Two weeks later on Feb 15th, the third iteration was announced by Bitcoin ABC which was to be activated by hashrate voting and on the same day Flipstarter was introduced, a sign of the search for alternative solutions. After a few more days and a few more people coming out more against the IFP (including Jonald Fyookball, Mark Lundeberg & Josh Ellithorpe), BCHN was announced on feb 20th with a formal release a week later. Also feb 27th, the DAA was brought back into the conversation by Jonathan Toomim with his " The BCH difficulty adjustment algorithm is broken. Here's how to fix it." video. By early march the IFP was effectively dead with its author Jiang Zhuoer vowing to vote against it. This became clear to everyone when ABC, a day later sudddenly shifted gears towards non-protocol, donation based funding: the IFP was dead. End march ABCs 2020 Business Plan was announced as a way to raise $3.3 million. Mid april to mid may was the high time for voluntary funding with four node implementations and General Protocols, a BCH DeFi Startup successfully raising funds.
By May 15th, the 6th HF network upgrade things had pretty much cooled down. The upgraded included nothing controversial and even saw an unexpected doubling in the unconfirmed transaction chain. June 15th a month later things started to heat up again with the BCHN announcement to remove the "poison pill" or "automatic replay protection". 8th Jul Jonathan Toomim posted "BCH protocol upgrade proposal: Use ASERT as the new DAA" which promised the solution to the long dragging DAA problem. Jul 23th however an unexpected twist occurred when Amaury Séchet posted "Announcing the Grasberg DAA" an incompatible, alternative solution. This, again, sparked a ton of debate and discussion. Grasberg lasted just two weeks from Jul 23th to Aug 6th when ABC announced its plans for the november 2020 upgrade but it had successfully united the opposition in the meanwhile. ABCs plan for november included dropping grasberg in favour of aserti3–2d and introducing IFPv4. Now we're here August 8th, the IFP which was declared dead after just over a month (Jan 22-Mar 5) is now back in full force. The rest of the history is still being written but if p2p electronic cash is to succeed in any big regard it's very thinkable that these events will get into history books.

Important resources: coinspice IFP timeline & Compiled list of BCH Miner Dev Fund posts, articles, discussions

History
Jan 13th : “Do CoinJoins Really Require Equal Transaction Amounts for Privacy? Part One: CashFusion” article by BitcoinMagazine [source]
Jan 13th : “Clearing the Way for Cooperation” Read.cash article by Amaury Séchet [source] on the controversy with Roger Ver about the amount of donations over the years
Jan 22nd : “Infrastructure Funding Plan for Bitcoin Cash” IFPv1 announced by Jiang Zhuoer of BTC.TOP [source] IFPv1: 12.5% of BCH coinbase rewards which will last for 6 months through a Hong Kong-based corporation & to be activated on May 15th
Jan 22nd : ”Bitcoin Cash Developers React to Infrastructure Fund Announcement: Cautiously Optimistic” coinspice article including Amaury Séchet, Antony Zegers, Jonald Fyookball & Josh Ellithorpe [source]
Jan 23rd : Jiang Zhuoer reddit AMA [source] [coinspice article]
Jan 23rd : Vitalik weighs in with his take on twitter [source]
Jan 23rd :” On the infrastructure funding plan for Bitcoin Cash” article by Amaury Séchet [source] [coinspice article] in which he proposed to place control of the IFP key in his hands together with Jonald Fyookball and Antony Zegers. . A group of 7 to 12 miners, developers, and businessmen in total would get an advisory function.
Jan 24th : “Bitcoin.com's Clarifications on the Miner Development Fund“ which emphasizes, among other things, the temporary and reversible nature of the proposal [source] [coinspice article]
Jan 24th : “Little Known (But Important!) Facts About the Mining Plan” Read.cash article by Jonald Fyookball in which he defended the IFP and stressed its necessity and temporary nature.
Jan 25th : massive amounts of public debate as documented by coinspice [coinspice article] with Justin Bons, Tobias Ruck and Antony Zegers explaining their take on it.
Jan 26th : public debate continues: “Assessment and proposal re: the Bitcoin Cash infrastructure funding situation” Read.cash article by imaginary_username [source] which was noteworthy in part because the post earned over Earns $1,000+ in BCH [coinspice article] and “The Best Of Intentions: The Dev Tax Is Intended to Benefit Investors But Will Corrupt Us Instead” by Peter Rizun [source]
Jan 27th : “We are a group of miners opposing the BTC.TOP proposal, here's why” article on Read.cash [source] [reddit announcement]
Jan 27th : Bitcoin Unlimited's BUIP 143: Refuse the Coinbase Tax [source][reddit announcement]
Jan 28th : “Bitcoin Verde's Response to the Miner Sponsored Development Fund” read.cash article by Josh Green in which he explains “Bitcoin Verde will not be implementing any node validation that enforces new coinbase rules.” [source]
Jan 28th : “Update on Developer Funding” read.cash article from Bitcoin.com [source] in which they state “As it stands now, Bitcoin.com will not go through with supporting any plan unless there is more agreement in the ecosystem such that the risk of a chain split is negligible.” And that “any funding proposal must be temporary and reversible.” This announcement from bitcoin.com and their mining pool lead the anonymous opposition miners to stand down. [source]
Jan 28th : The 253rd "Thoughts on developer funding" Article – by Chris Pacia, to tackle the “serious misconceptions in the community about how software development works”. He ends on a note of support for the IFP because of lack of realistic alternatives. [source]
Feb 1st: “BCH miner donation plan update” IFPv2 announced by Jiang Zhuoer of BTC.TOP [source] Which changes the donation mechanism so miners directly send part of their coinbase to the projects they wants to donate to. It would be activated with hashrate voting over a 3-month period with a 2/3 in favour requirement. The proposal also introduces a pilot period and a no donation option, Jiang Zhuoer also says he regards 12.% as too much.
Feb 7th: Group of BCH miners led by AsicSeer voice scepticism about the IFP during a reddit AMA [source]
Feb 15th: “On the Miner Infrastructure Funding Plan” article by Bitcoin ABC [source] In which they announce they will implement IFPv3 in their upcoming 0.21.0 release. This version has amount reduced to 5% of block reward and will go in effect with BIP 9 hashratevoting and a whitelist with different projects.
Feb 15th : “Introducing Flipstarter” [source]
Feb 16th :” Bitcoin.com’s stance on the recent block reward diversion proposals” video by Roger Ver on the Bitcoin.com Official Channel. [source] > Ver called Zhuoer’s IFP “clever” but ultimately “problematic.” [coinspice article]
Feb 16th :” BCH miner donation plan update again” read.cash article by Jiang Zhuoer of BTC.TOP [source] In which he briefly outlines the details of IFPv3
Feb 17th : “Latest Thoughts On Infrastructure Mining Plan” post by Jonald Fyookball [source]
Feb 17th : “Regarding the Bitcoin Cash Infrastructure Funding Plan, I am certain now that it should be scrapped immediately.” tweet by Mark Lundeberg [source]
Feb 19th : “Thoughts on the IFP - A Dev Perspective“ read.cash article by Josh Ellithorpe [source]
Feb 20th : “Bitcoin Cash Node” post announcing the new node implementation [source]
Feb 20th : First “Bitcoin Cash Developer Meeting” After IFP Proposal [source]
Feb 24th : “Flipstarter 500k, 6 independent campaigns” post announcing the goal to “fund the BCH ecosystem with 6 independent campaigns and an overall 500,000 USD target” [source]
Feb 27th : BCHN Formally Released [source]
Feb 27th : “The BCH difficulty adjustment algorithm is broken. Here's how to fix it.” Video by Jonathan Toomim [source]
Mar 3th :” Bitcoin Cash Node 2020: plans for May upgrade and beyond” post by BCHN [source]
Mar 4th :”Author of the Bitcoin Cash IFP [Jiang Zhuoer] Vows to Vote Against It, Using Personal Hash in Opposition” [source]
Mar 5th :Bitcoin ABC announces their 2020 Business Plan Fundraising for later in march [source]
Mar 15th : “EatBCH campaign funded! Next: node campaigns.” campaign funded after 11 hours [source]
Mar 30th : Bitcoin ABC 2020 Business Plan [source] $3.3 Million Fundraiser [source]
Apr 17th : Five flipstarter node campaign launched. [source]
Apr 26th : BCHN flipstarter campaign successfully funded. [source]
Apr 27th : VERDE flipstarter campaign successfully funded. [source]
May 4th : KNUTH flipstarter campaign successfully funded. [source]
May 7th : “BCH DeFi Startup General Protocols Raises Over $1 mil“ [source]
May 8th : BCHD flipstarter campaign successfully funded. [source]
May 9th : Deadline for node campaigns, ABC flipstarter campaign not funded. [source]
May 14th : “With IFP Defeated, Bitcoin ABC, ViaBTC & CoinEX CEO Publicly Consider a Bitcoin Cash Foundation” [source]
May 15th : deadline for ABC fundraiser campaign, ends at 55% completed. [source]
May 15th : 6th HF network upgrade -> new opcode op_Reversebytes, increased of the chained transaction limit from 25 to 50, and the improved counting of signature operations using the new “Sigchecks” implementation [source] with the “Controversial Funding Plan Rejected by Miners” [source]
May 25th : “Announcing the SLP Foundation” [source]
Jun 15st : “BCHN lead maintainer report 2020-06-15” announcement to remove the Automatic Replay Protection (a.k.a. the Poison Pill) from BCHN in november [source]
Jun 16st : “So [BCHN] is going to fork off from BCH at the next upgrade. Same old story. […]” tweeted Vin Armani [source]
Jun 21st : “Why Automatic Replay Protection Exists” post by Shammah Chancellor [source]
Jul 7th : “The Popular Stablecoin Tether Is Now Circulating on the Bitcoin Cash Network” [source]
Jul 8th : “BCH protocol upgrade proposal: Use ASERT as the new DAA” post by Jonathan Toomim [source]
Jul 18th : “$6M Worth of Tether on the Bitcoin Cash Chain Highlights the Benefits of SLP Tokens” [source]
Jul 23th : “Announcing the Grasberg DAA” post by Amaury Séchet[source]
Jul 24th : “Thoughts on Grasberg DAA” post by Mark Lundeberg [source]
Jul 29th : CashFusion security audit has been completed [source]
Jul 31st : Electron Cash 4.1.0 release with CashFusion support [source]
4th year, august 2020 – 2021
Aug 1st : “Bitcoin Cash: Scaling the Globe“ Online conference for ForkDay Celebration [source]
Aug 2nd : >“Is there going to be a fork between ABC and BCHN?” > “IMO it is very likely. If not in November, then next May.” – Amaury Séchet
Aug 3rd : “Dark secrets of the Grasberg DAA” post by Jonathan Toomim [source]
Aug 3rd : “Joint Statement On aserti3-2d Algorithm“ post by General Protocols, including Cryptophyl, Read.cash, Software Verde & SpinBCH [source]
Aug 3rd : Knuth announces they will be implementing aserti3-2d as DAA for november. [source]
Aug 3rd : Amaury rage quit from the developer call [source]
Aug 4th : “But why do people care about compensating for historical drift? Seems like a tiny problem and if it's causing this much social discord it seems not even worth bothering to try to fix.” Tweet by Vitalik [source]
Aug 5th : “Bitcoin Cash (BCH) November 2020 Upgrade statement” signed by BCHD, electron cash, VERDE, BU members, BCHN developers, Jonathan Toomim, Mark B. Lundeberg and many others [source]
Aug 5th : “BCHN FAQ on November 2020 Bitcoin Cash network upgrade” [source]
Aug 6th : “Bitcoin ABC’s plan for the November 2020 upgrade” [source] the announcement that they will drop Grasberg in favour of aserti3–2d (ASERT) and will also include FPv4 in which 8% of the blockreward goes to ABC as development funding.
Aug 7th : “Joint Statement from BCH Miners regarding Bitcoin ABC and the November 2020 BCH Upgrade.” Read.cash article by asicseer [source] stating “Over recent months, most miners and pools have switched to BCHN, and presently operate a majority of BCH hashrate.”
Aug 7th : “Simple Ledger Protocol's Joint Statement Regarding Bitcoin ABC on BCH's November 2020 Upgrade” read.cash post by the SLP-Foundation [source]
submitted by Mr-Zwets to btc [link] [comments]

The DeFis Yearn (DSY) public chain is about to launch. Another blockchain world’s myth is about to be born!

The DeFis Yearn (DSY) public chain is about to launch. Another blockchain world’s myth is about to be born!
1. What is DeFis Yearn (DSY)?
According to the official introduction, DSY is based on the Ethereum (ETH, Ethereum) developed by Vitalik Buterin. It has improved and added DPoS master node network, side chain network, anonymous transaction, DeFi efficiency performance optimization and added POC as a block Encrypted digital currency with multiple new functions such as chain data storage.
The goal of DeFis Yearn is to build a world-type distributed computer system developed and governed spontaneously by the community. Following this vision, our platform will allow the creation of blockchain applications to be given the possibility of keeping application data private. This will be possible through a series of "zero-knowledge" encryption tools, which will become possible to be made usable. Combining revolutionary technology, DSY integrates three functions that operate independently in the traditional sense. They are: transaction, communication and competitive governance to accelerate innovation. With the help of blockchain technology and computing infrastructure technology that can be distributed across the world, this innovation process can be carried out in a safe and anonymous manner. The system integrates a number of first-class technologies and provides an open platform for innovative development that is not restricted by permissions and can flexibly adapt to user preferences.

https://preview.redd.it/j0ohsvxz5an51.png?width=553&format=png&auto=webp&s=17116221a1ce6670716d1512f48ce8fd00d8e5ee
2. What pain points does DeFis Yearn (DSY) solve?
Putting DeFis Yearn (DSY) on the mainstream public chains in the blockchain world, DeFis Yearn is undoubtedly the most avant-garde and has great explosive potential. This is embodied in that DeFis Yearn has broken through the bottleneck of the current public chain in many aspects. . From the perspective of the functional properties of currencies, the anonymous transfer technology created by DeFis Yearn has well complemented the privacy flaws of most digital currencies on the market. Secondly, from the perspective of the design of the public chain consensus mechanism, DSY adopts the POW+DPOS+POC fusion consensus mechanism. First of all, the POW mechanism is similar to the current mainstream currencies BTC, ETH, etc., which are intended to be protected and guaranteed by computing power Digital currency has a good and fair distribution mechanism, and the POW currency distribution mechanism is still the most scientific at present.
However, the POW mechanism has a huge disadvantage, that is, each transfer requires more nodes to confirm, which leads to the problem of slow transfer speed of the POW mechanism digital currency. In the long run, the number of users of digital currency is gradually increasing over time, and digital currency with a pure POW mechanism will eventually be unable to carry the increasing number of users in the later stage. Bitcoin in 2017 and Ethereum today are both encountering This kind of crisis, as a currency digital currency, the core value of its currency is gradually collapsing. When a currency transfer requires an extremely expensive fee and it takes a long time to arrive, it can no longer be called a good currency. , Let alone compete with other types of currencies, because the poor transfer experience will gradually drive away existing digital currency users.

https://preview.redd.it/hovsbj226an51.png?width=553&format=png&auto=webp&s=558b0004f606c8533d0c4bfa78b87462ce9ce17f
So, can this problem be solved? Of course, thanks to the emergence of the DPOS consensus mechanism, DPOS was born to improve the transfer speed bottleneck of POW. DPOS has a theoretical million-level TPS and is currently the only consensus mechanism that can carry large-scale commercial and massive users. This is why DeFis Yearn (DSY) introduces the DPOS consensus mechanism. In the early stage of DSY operation through POW, it provides computing power protection and a good currency distribution mechanism for DSY. After the market has a certain amount of currency in circulation, the DPOS mechanism is introduced to solve the transfer bottleneck of the pure POW mechanism and solve the POW mechanism that has been criticized. The problem. In addition, according to DSY official data, DSY will adopt the DAO decentralized governance mechanism, which is by far the most efficient governance mechanism. It can pave the way for DSY in the rapid development of the blockchain world. Turn off the highway.

https://preview.redd.it/0vn62zn36an51.png?width=447&format=png&auto=webp&s=8a48ebe90bd13c54c04db3c4925e87913308989f
Since the POW+DPOS mechanism is so perfect, why should we introduce the POC mechanism to achieve the integration of the three consensus mechanisms of POW+DPOS+POC? The reason is simple. There is still a problem with the POW mechanism, which is meaningless energy consumption. POC not only solves the problem of energy consumption, but also provides users with the function of decentralized storage. POC gives miners the value of existence and contribution to human society in a true sense. In addition, the integration of the POC mechanism can effectively increase the gold content of the DSY public chain, so that in addition to the text information of the transfer, the DSY chain also carries various forms of content. At that time, DSY has an excellent privacy protection mechanism in terms of currency attributes. ——Anonymous transfer, which can carry various ecological DAPPs and provide content storage based on the properties of the blockchain. It is a decentralized encrypted storage navigation system and a decentralized program operation system, which greatly increases the gold content of the DSY public chain , Which also enables all DSY holders to enjoy the dividends brought by the ecological development of the chain.
Does DSY plan to implement currency applications in the real world?
In fact, offline payment is a pain point that all digital currencies cannot solve. After all, there is a certain gap between digital currencies and legal currencies. But fortunately, as can be seen from the project development route in the official DSY white paper, DSY will implement offline payment functions and will support payment through the world's largest legal currency payment institution-PayPal. In addition to international payment tools, DSY also supports offline payments in some local areas, such ascommonly used in IndiaPaytm Paytm, Yandex.Money in Russia, WeChat and Alipay in China, etc. Users can use DSY decentralized wallet to directly complete offline fiat currency scan code payment, DSY will automatically convert the corresponding fiat currency amount to pay to the other party. This feature will undoubtedly be a phenomenon-level innovative application in the blockchain world in 2020.

https://preview.redd.it/4ei1t3n56an51.png?width=431&format=png&auto=webp&s=0380b319ef7edadbdabf559ec08b93456d35dac2
How to get DSY?
From the official information and development progress report, DeFis Yearn will first open a small number of DSY tokens for crowdfunding, and then complete the mainnet launch, so we can get DSY from several channels, whether through early crowdfunding , Mining or future exchange purchases. From the perspective of DSY's technological breakthrough and powerful offline application functions, DSY will undoubtedly bring a new round of impact to the blockchain world, and it is expected to cast another myth. This is mainly because the popularity of DSY mainnet is too high. , Has attracted the attention of a large number of domestic and foreign capitals, and everyone is looking forward to this moment. Under the multiple favorable circumstances, how strong DSY can perform, let us wait and see.

https://preview.redd.it/dpozm2z66an51.png?width=495&format=png&auto=webp&s=ce177696502ae833e56198863924c04c9e6601f9
submitted by BitRay2077 to u/BitRay2077 [link] [comments]

DSY public chain will first launch the DEFI sector, another blockchain myth is about to be born!

DSY public chain will first launch the DEFI sector, another blockchain myth is about to be born!
1. What is DeFis Yearn (DSY)?
DSY is based on Ethereum (ETH, Ethereum) developed by Vitalik Buterin. It has improved and added DPoS master node network, side chain network, anonymous transaction, DeFi efficiency performance optimization, and added POC as blockchain data storage.
The goal of DeFis Yearn is to build a world-type distributed computer system developed and governed spontaneously by the community. Following this vision, our platform will allow the creation of blockchain applications to be given the possibility of keeping application data private. This will be possible through a series of "zero-knowledge" encryption tools, which will become possible to be made available. Combining revolutionary technology, DSY integrates three functions that operate independently in the traditional sense. They are: transaction, communication and competitive governance to accelerate innovation. With the help of blockchain technology and computing infrastructure technology that can be distributed across the world, this innovation process can be carried out in a safe and anonymous manner. The system integrates a number of first-class technologies and provides an open platform for innovative development that is not restricted by permissions and can flexibly adapt to user preferences.

https://preview.redd.it/2vbawe6r42m51.png?width=553&format=png&auto=webp&s=470964be382c1c5636ce11cdc4559eb47764969b
2. What problems does DeFis Yearn (DSY) solve?
Putting DeFis Yearn (DSY) on the mainstream public chains in the current blockchain world, DeFis Yearn is undoubtedly the most avant-garde and has great explosive potential. This is embodied in that DeFis Yearn has broken through the bottleneck of the current public chain in many aspects. . From the perspective of the functional properties of currencies, the anonymous transfer technology created by DeFis Yearn has well complemented the privacy flaws of most digital currencies on the market. Secondly, from the perspective of the design of the public chain consensus mechanism, DSY adopts the POW+DPOS+POC fusion consensus mechanism. First of all, the POW mechanism is similar to the current mainstream currencies BTC, ETH, etc., which are intended to be protected and guaranteed by computing power Digital currency has a good and fair distribution mechanism, and the POW currency distribution mechanism is still the most scientific at present.
However, the POW mechanism has a huge disadvantage, that is, each transfer requires more nodes to confirm, which leads to the problem of slow transfer speed of the POW mechanism digital currency. In the long run, the number of users of digital currency is gradually increasing over time, and digital currency with a pure POW mechanism will eventually be unable to carry the increasing number of users in the later stage. Bitcoin in 2017 and Ethereum today are both encountering This kind of crisis, as a currency digital currency, the core value of its currency is gradually collapsing. When a currency transfer requires an extremely expensive fee and it takes a long time to arrive, it can no longer be called a good currency. , Let alone compete with other types of currencies, because the poor transfer experience will gradually drive away existing cryptocurrency users.

https://preview.redd.it/wuff86ft42m51.png?width=553&format=png&auto=webp&s=a872fbb5d335b4d42a41ac8139614d070a79022f
So, can this problem be solved? Of course, thanks to the emergence of the DPOS consensus mechanism. DPOS was born to improve the transfer speed bottleneck of POW. DPOS has a theoretical million-level TPS and is currently the only consensus mechanism that can carry large-scale commercial and massive users. This is why DeFis Yearn (DSY) introduces the DPOS consensus mechanism. In the early stage, DSY provided computing power protection and a good currency distribution mechanism for DSY through POW operation. After the market has a certain amount of currency in circulation, the DPOS mechanism is introduced to solve the transfer bottleneck of the pure POW mechanism and solve the POW mechanism that has been criticized. The problem. In addition, according to DSY official data, DSY will adopt the DAO decentralized governance mechanism, which is by far the most efficient governance mechanism.

https://preview.redd.it/77s0599w42m51.png?width=447&format=png&auto=webp&s=359565f9e5802ccf20d649d44be54c85d495451b
Since the POW+DPOS mechanism is so perfect, why should we introduce the POC mechanism to achieve the integration of the three consensus mechanisms of POW+DPOS+POC? The reason is simple. There is still a problem with the POW mechanism, which is meaningless energy consumption. POC not only solves the problem of energy consumption, but also provides users with the function of decentralized storage. POC gives miners the value of existence and contribution to human society in a true sense. In addition, the integration of the POC mechanism can effectively increase the gold content of the DSY public chain, so that in addition to the text information of the transfer, the DSY chain also carries various forms of content. At that time, DSY has an excellent privacy protection mechanism in terms of currency attributes. ——Anonymous transfer, which can carry various ecological DAPPs and provide content storage based on the properties of the blockchain. It is a decentralized encrypted storage navigation system and a decentralized program operation system, which greatly increases the gold content of the DSY public chain , Which also enables all DSY holders to enjoy the dividends brought by the ecological development of the chain.
Does DSY plan to implement currency applications in the real world?
In fact, offline payment is a pain point that all digital currencies cannot solve. After all, there is a certain gap between digital currencies and legal currencies. But fortunately, as can be seen from the project development route in the official DSY white paper, DSY will implement offline payment functions and will support payment through the world's largest legal currency payment institution-PayPal. In addition to international payment tools, DSY also supports offline payments in some local areas, such as Paytm commonly used in India, Yandex.Money in Russia, WeChat and Alipay in China, etc. Users can use DSY decentralized wallet to directly complete offline fiat currency scan code payment, DSY will automatically convert the corresponding fiat currency amount to pay to the other party. This feature will undoubtedly be a phenomenon-level innovative application in the blockchain world in 2020.

https://preview.redd.it/86q08p5y42m51.png?width=431&format=png&auto=webp&s=fda7373f2e1ca9fc6a33d237071766a5ee0effec
How to get DSY?
From the official information and development progress report, DeFis Yearn will first open a small number of DSY tokens for crowdfunding. After the crowdfunding is over, it will be launched on the decentralized exchange of the DEFI sector, and then the mainnet will be launched. We can obtain DSY from multiple channels, whether through early crowdfunding, decentralized exchanges or future centralized exchanges. From the perspective of DSY's technological breakthrough and powerful offline application functions, DSY's first decentralized exchange in the DEFI sector will undoubtedly bring a new round of impact to DEFI, and it is expected to create another myth of DEFI. This is mainly Because the popularity of DSY’s mainnet is too high, it has attracted the attention of a large number of domestic and foreign capitals. Everyone is looking forward to this moment. With multiple good conditions, how strong DSY can perform, let us wait and see!

https://preview.redd.it/xr38t52052m51.png?width=495&format=png&auto=webp&s=914b340678a01811e20586679f8d3a0eab98a271
submitted by BitRay2077 to u/BitRay2077 [link] [comments]

Bitcoin Vs Ethereum with Samson Mow & Vitalik Buterin ... Vitalik Buterin to FIRE Thousands of Ethereum MINERS over next 3 years! Vitalik Buterin: Vitalik Buterin explains Ethereum Vitalik Buterin's Ethereum Project

Wenn Vitalik Buterin und sein Entwicklerteam einen Hard-Fork erzeugen, um ein Element der Ethereum-Blockchain zu verändern oder zu verbessern, muss die gesamte Community der Miner, User und Nodebetreiber mit an Bord sein und wenn kein Konsens erreicht wird, wird das Software-Upgrade und der Hard-Fork entweder abgelehnt oder könnte zu zwei Blockchains führen, wie im Fall von Ethereum und ... Ethereum-Gründer Vitalik Buterin verkündete vor kurzem auf Twitter, dass Bitcoin Cash nicht Bitcoin ist. Buterin gab das Statement am 1. Februar als Antwort für Brad Mills ab, der ihm vorgeworfen hatte, er würde Bitcoin Cash unterstützten. Ethereum co-founder Vitalik Buterin admitted in a tweet that the higher transaction fee on the second-largest blockchain network is opening the door to security risks. Vitalik Buterin: High ETH Transaction Fees Can Compromise Ethereum’s Security Vitalik Buterin, vielleicht die kritischste Stimme unter den Ethereum-Führern, sprach sich erneut gegen das Yield Farming im DeFi-Sektor aus.Seit Beginn des „DeFi-Fiebers“ hat Buterin die Nachhaltigkeit des Marktes infrage gestellt. Die Investoren pumpen jedoch weiterhin ihr Geld in den Markt, wobei der Gesamtwert (TVL) im DeFi-Sektor von Ethereum mit 9,03 Milliarden Dollar ein neues ... Vitalik enthüllte etwas zufällig die Größe seiner ETH-Bestände; nach einem Twitter-Fell mit dem berühmten Bitcoin-Gegner Nouriel Roubini schlug Vitalik vor, dass er nie mehr als 0,9% der gesamten ETH besitzt. Seine Adresse umfasst derzeit rund 350 Tausend ETH, was einem Dollar-Betrag entspricht, der knapp nördlich von 55 Millionen Dollar liegt. Vitalik bestätigte auch, dass er kleinere ...

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Bitcoin Vs Ethereum with Samson Mow & Vitalik Buterin ...

More info on : https://bit.ly/3kL9a1k Vitalik Buterin is inventor and co-creator of Ethereum, described as a “decentralised mining network and software development platform rolled into one” that facilitates the creation of new ... Vitalik shows how to properly mine Ethereum with affordable hardware :-) www.singaporecryptomining.com. This video is unavailable. Watch Queue Queue In this bonus episode, I am joined by Samson Mow the CSO at Blockstream and creator of Ethereum Vitalik Buterin. With the ongoing battle between Bitcoiners a...

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